Hecla Mining Co HL.PR.B

Show me the money!

[HuskySW]

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?

[roberto146]

Considering anyone or any entity writing calls would be writing covered calls it stands to reason that their holding would have been acquired at a price lower than the calls they wrote. (Otherwise it's like a naked short with potential unlimited losses, a pure gamble). The call is then a cap on their profit on the holding, therefore writing the call is just a little extra profit. Their opinion

[HuskySW]

Thanks for the point of view, doing anything naked can be hazardous to your financial health.  Lol I agree, but hey I could be wrong, most retail investors aren’t doing large calls or puts and are waiting for 1 – Silver to increase 2 - HL profits to increase a lot 3 – A shortage of silver That’s the bet.  Or as you mentioned do trades by timing the market. Hecla First Quarter Production

[roberto146]

Re the house analogy the only thing to worry about would be if the housing market lays an egg and nothing is selling the seller can sue for closing! From my past experience in the RE business (could be different now, or in different locales?), in a normal active housing market the deposit was just returned and the property is resold. Otherwise the property could be tied up in a court dispute for a

[HuskySW]

Q1 financial should be interesting and it would be great to see HL hit it out of the park and pass some of the profits and dividends to the SH..  Average price of Au/Ag is up and if they can do 20m oz in 24 rather than into 26 it would be immpressive...  Make hay while the sun shines.   The 43% increase was great as a headline. :) So up 5% and add in KH I would expect a great