drbubb Posted April 1, 2008 Report Share Posted April 1, 2008 Silvercrest has been one of the "good ones", performning well since I picked it up on the lows in Q4. A nice move up in recent days, helped by a recommendation Hang onto Your Hats coffintrader44/1/2008 7:26:06 PM | Strong Buy | There is no switching back to either. SVL is clearly undervalued at this price and this is why Greg McCoach recommended it as a strong buy to his subscribers. Those Obviously he thinks its gonna hit $2 dollars soon and yes they are very close to production but they are also drilling as we speak so its gonna have the best of both worlds. Exploration and Production(Cash Flow) Seems to me that the market is favoring near term production companies or ones already in production. Just think about it, by the time they are in production next year, Silver will be near $30 dollars which many claim for the year end 2008 target price and Gold near $1500 - $2000. Now take over 100 million ounces Silver that the company will soon come up with in the updated 43-101 and 1 million ounces gold. I have talked to the company and they are saying that the costs of mining per ounce of silver will be about $7 dollars. I can be conservative here and with $30 dollar silver by next year, lets say $15 dollars profit per ounce and $400 profit on $1500 dollar Gold. 100 million Silver ounces x $15 profit per ounce = $1.5 Billion for the Silver Value 1 million Gold ounces x $400 profit(conservative) = $400 million for the Gold Value Thats almost $2 Billion dollars worth of metal in the ground and its only trading at $45 million dollar market cap. Divide $2 billion by 50 million shares outstanding fully diluted and you will see what price the company should be trading at. $40 dollars per share is the number i get! Now im not saying its gonna be at that price but thats the proven value that they have in 43-101 numbers. So $1 dollar or even $2 dollars is stealing Candy from a baby! There you go.. CLEARLY UNDERVALUED BIG TIME!!!!! /from: http://www.stockhouse.com/Bullboards/Messa...mp;pd=2&r=0 Link to comment Share on other sites More sharing options...
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