Show me the money!Nothing against Hecla they are a great employer and seem to be in aquisition mode, but one thing that has made me wonder for a ong time is the dividend (escalting depedent on price of silver and current is abysmal). The current rate really doen't make sense from a return perspective (much better returns elswhere without risk!).
So the question is since silver is mostly range bound except for blips where is the money? Is it riding the market (institutiions playing games) and taking profits or not. Certainly not my game as I cannot be bothered.
So since this board is so quiet I thought I would take a look a HL Yahoo conversations and this popped up in a recent comment. Along with a bunch of other entertaining ones. lol
One posters ouote---
Please be warned:
More than 7000 April CALLS will go into the money if HL were to remain above 5.50 by expiration date...
...while only a tiny fraction of puts would be wiped out...
...and for that reason alone, the 5th rate funds invested in HL will NEVER NEVER NEVER allow the stock to close much higher than 5.50...
...and that means most of the pump messages on this board are provided by those same funds in order to dupe amateurs to buy loads of ultimately worthless HL calls.
Please be warned:
WRITING calls is the key source of income for the HL funds, since HL only pays a 1.5 CENT annual dividend...
End Quote--
Theres more and its quite entertaining.
Here's the questions is it true that HL returns is about puts and calls by professional (or not) traders.
I'm curious about investors opinons, are they in for the play on share price, the dividend or just hoping that silver pops and then cash out?