Here's an extract from Friday's edition. GLTA
SILVERCREST MINES (V-SVL) $2.67 +0.03
We ask our partner Russ Dratwa, “If you could only buy
one stock today, what would it be? He replies, “The past
couple of years have been one of the most complex times in
my 25+ year history to invest. It has truly been a case of the
“have” & “have nots”.
Those clients seeking safety & yield have done amazingly
well the past couple of years while those seeking pure
growth have been shocked at the pain that a bad market
environment can inflict. I have heard & seen little the past
few months that would lead me to believe anything will be
different for 2013 from what we saw in 2012.
I’m told by almost everyone I interview that most of the major
corporations have not been this “lean, mean & healthy”
since the 50’s but the major sovereign powers of both
Europe & the US continue to disappoint, and can potentially
drag down the corporate world, with how they are mishandling
their debt situations. Juniors will likely face cash challenges
in this environment.
One of the hottest sectors right now has been uranium as
we continue to “tip toe” for risk takers in the “have not” sector,
hoping to find some strong growth stories. One company
not in the uranium sector that has not disappointed us
(yet?) is one we’ve covered extensively for a couple of years
now & its future appears to be bright, Silvercrest Mines.
We sat down with COO Eric Fier of Silvercrest Mines yesterday
and we leave the meeting even more comfortable
with their growth prospects than we were before as this has
been one of the few companies in the speculative sector
which has not caused us any loss of sleep. One thing many
investors might not realize is that Silvercrest, at this stage,
is more of a gold company than silver but the pending resource
update that is due “any day” should shift Silvercrest
more towards silver. Eric tells us we will be pleased with
what he feels will be a 50 to 100% increase to their current
Management certainly believes in their own company as
they own 9% (refreshing) and tells us the $50m in the bank
gives them the stability many juniors don’t have the luxury
of, cash on hand.
When we ask Eric what their exit strategy might be, he
tells us who might be very interested in taking them out &
why along with the price he feels would be fair to both parties’,
which very much appeals to us.