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Registered User
Joined: 5/17/2005
Posts: 221
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SLW has been bouncing around in an upwards trending channel since August (from 3.14 to 5). It is now trading on the bottom of this channel and the 50 day MA (which is not that significant at this stock is only 11% insitutional owned). The 7,3,3 stochastics are over sold and turning up . This one could be entered at 4.99 , a stop just below the trend line at about 4.88 ... minimal down side risk to good upside potential.
The company is debt free ... makes about 6.5 million per quarter ...has little short interest (only 15,000 shares). Here is a statment from yahoo in one of the news items:
Silver Wheaton Corp. ("Silver Wheaton" or the "Company") is a growth-oriented silver company, and is the only mining company with 100% of its revenue from silver production. The Company's goal is to be recognized as the largest, most profitable and best managed pure silver company in the world.
Not only is this company interesting from a technical stand point but they are interesting from a growth stand point.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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Nice pick and thumbnail malcolmb, thanks. Only differ with you on stop placement. Since the 50sma is so close by I would give it a little more jiggle room and put stop just below it at about 4.75.
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Registered User
Joined: 5/17/2005
Posts: 221
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thanks for that fp .. you are right on that one .... I rethought the stop loss.
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Registered User
Joined: 8/11/2005
Posts: 26
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there is some negative BOP coming into play. May imply consolidation if not trend failure (IMHO)
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Registered User
Joined: 11/14/2005
Posts: 7
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If you look at a chart of the price of silver [$SILVER - continuous contract at the Stockcharts website] this company is following more or less the same channel.
I think the immediate future of Wheaton will be influenced by the silver price.
It normally follows the gold price [which I think is set for a plunge]... but there is an unusual discrepancy between the gold and silver derivatives at the moment. There is a chance silver will not follow gold.....
I'm no expert, but thought it would be of use to point out these relationships.
John
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