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Market Rally Funded By Goverment Cash?
Charles Biderman, founder and CEO of TrimTabs Investment Research,
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Video posted by TrimTabs Investment Research
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Dear Members,
Back on November 15, 2009, we released a report titled,
"A New Standard in Silver." In it, we featured a relatively
unknown silver junior that was trading at $0.32.
The story went something like
this...
Many years ago, a small Canadian exploration company went and purchased a group
of abandoned silver mines. Like many companies hoping to strike the big one,
their hopes relied on succeeding where all previous owners had failed. Just
like the story of Goldcorp in our past newsletter, "The Gold Super Hero."
Over the last 14 years before the Canadian junior snatched up this piece of
property, it hadn't produced a single ounce. But as the drills turned, so
did the fortunes of this company and its investors. They uncovered over 195
million ounces of silver reserves! If at first you don't succeed...
Over the last ten years, (this) silver stock has outperformed
every major indices. It crushed the NASDAQ by 11,500%. It destroyed the Dow by
over 12,000%. And it obliterated the S & P 500 by a whopping 18,000%.
To put in short, a measly $1000 investment into this company would have netted
you $76,000. A $14,000 investment would have made you a millionaire raking in
just over $1 Million!
This company is Silver Standard Resources (TSX:SSO)(NYSE:SSRI)
Because of their discovery, Silver Standard gave its investors over 850%
profits, year after year, for nine straight years!
But guess what? We're not here to talk about Silver Standard.
We're here to talk about Silvermex Resources Ltd. (TSX-V: SMR)
Here's why.
We caught wind of a news
release that peaked our immediate attention and caused us to change our schedule, yet again. Silvermex Resources Ltd. (TSX-V: SMR) put out a press release stating that they
have elected a few new directors:
Silvermex Resources Ltd. (TSX-V: SMR) announces that on November 4, 2009 it held its Annual and Special
Meeting wherein the following directors were elected to the board: Arturo
Bonillas, Bruce Bragagnolo, Duane Nelson, Joseph J. Ovsenek, Kenneth C. McNaughton
and Michael H. Callahan.
Doesn't sound interesting at first glance, I know. But take
a closer look.
Both Bruce and Arturo are the founders and CEO and
President, respectively, of Timmins Gold Corp. Timmins gold is focused
solely on Mexico, where Silvermex operations reside. These two have
taken Timmins' from their 52-week low of CDN$0.20 to over a $1 dollar
this past Friday. That's a 500% increase.
Duane A. Nelson: Over 25 years of private and public sector
experience with a focus on early-stage projects.
Michael H. Callahan: Vice President, Corporate Development
of Hecla Mining Co., from 2002 to 2006. He served as President of Minera Hecla
Venezolana, a subsidiary of Hecla Mining Co and also as Vice President of Hecla
Mining Co. from 2006 to January 2009.
Hecla Mining currently has a market cap
of $1.27 billion.
But that's not the only thing that struck us.
Take a look at the other names.
Joe Ovsenek: Senior Vice President, Corporate Development of
Silver Standard Resources Inc.
Kenneth C. McNaughton: Vice President, Exploration for
Silver Standard Resources Inc since 1991.
With the new team in place, Silvermex Resources (TSX-V: SMR) certainly has our
attention.
Here is the full news release: Click Here
It looks like we're not the only ones. Over the past week since
the announcement of their new directors, Silvermex has quietly crept up from
just over CDN $0.26 to a close of $0.32 this past Friday.
Oh, and lets not forget that Silver Standard and insiders currently own a large chunk of shares in Silvermex. More than 20%...
That's an excerpt from our past newsletter, "A New Standard in Silver."
Of course, since that report Silvermex Resources Ltd. (TSX-V: SMR) has been pushing forward with significant corporate developments including both the addition of it's new Chairman Arthur Brown (the man who built Hecla Mining, a company worth close to $1.5 billion) and completing the acquisition of the Rosario project.
At Friday's close, their shares traded at $0.53
Whenever we select a featured company, we take into account many factors including strong asset holdings, near-term production potential, and the ability for management to excecute. All of this needs to be combined with a story that is relatively "under the radar" and thus, more likely to be trading at a discount when compared to their industry peers.
We knew the Silvermex story wouldn't remain a secret for very long.
Since our newsletter, take a look at what other professionals in the industry had to say about Silvermex Resources (TSX-V: SMR):
Morgan Report/Silver
Investor (11/30/09)
"Silvermex offers good
value on both a market capitalization per oz and enterprise value per oz basis.
It is also one of the lowest market capitalizations and enterprise values of its
peer group. Additionally, this company has high leverage to an increase in
resource estimates.
The market is currently giving little to no value for
the infrastructure or production potential in place at the San Marcial/Rosario
Project and very little if any value to the bulk-mineable portion of the
deposits held."
Bob Moriarty, 321gold
(08/19/09)
"I went to Mexico three
weeks ago to see some silver projects. Anyone who wants to believe there is some
sort of shortage of silver has obviously never been to Mexico. There is a lot of
silver yet to be mined in Mexico, far more than has been mined to
date.
My first visit was to Silvermex (SMR-V). Silvermex has about 40
million ounces of 43-101 silver resource in addition to some gold, lead and zinc
resources. It works out to about an ounce of silver per share. That should put
some kind of floor under the share price. As it works out right now, investors
are buying ounces of silver for less than $.20 an ounce. With near term
production potential, that's pretty cheap.
All of the properties
belonging to Silvermex were past producers. They went out of production due to
silver prices, not any lack of resources. For anyone who believes the price of
silver is going up, Silvermex offers a low price way to buy silver ounces. The
company believes they can be in production within 24 months at a capital cost of
under $15 million. This is one of the most highly leveraged silver plays in the
world."
Lawrence Raulston - Resource Opportunities
(12/1/09)
"Silvermex is a silver exploration
and development company focused on near term production in Mexico. The
company recently acquired a past producing mine and associated
infrastructure, which is located close to one of its advanced-stage deposits. The company is
investigating the feasibility of using the recently acquired facilities to treat ore from its
deposit. The
company's flagship past producing San Marcial silver mine hosts 22 million ounces of silver in the
measured, indicated and
inferred categories, plus substantial lead and zinc values. The
deposit is open in
all directions. Silvermex plans to conduct expansion drilling of the
deposit, but only
after commercial production is achieved.
Silvermex
now has a total of 42 million ounces of silver at its various projects giving it
a favorable value per ounce compared to its peers.
More important than the
ounces now in hand is the potential to greatly expand the resources, as well as
the prospects for near-term production. The recently expanded management team
provides a basis for confidence that the company will achieve its
objectives."
David Smith, The Morgan Report
(12/17/09)
"In an interview on King World News,
'Mr. Gold' Jim Sinclair, spoke of the mortal danger that 'onerous underwriters'
pose to a mining exploration company. Since exploration is capital-intensive, a
lot of money goes into the ground before any gold/silver comes out. The
management has to exchange shares for a loan-generally the only money coming
into the explorer - which the underwriter then sells into the marketplace,
depressing share price.
Sinclair says, 'The whole play for the companies
is to get out of exploration alone, into production in which they can make more
money than the day to day expenses, and avoid Wall Street financing.'
. .
.It would appear that Silvermex Resources, via its Rosario silver/gold/lead/zinc
mine and surrounding past-producing properties, along with indications of a
significant near-surface ore body, has been handed the opportunity and is
developing the strategy by which to fulfill Jim Sinclair's dictum of
'graduating' from an externally financed exploration company, to an internally
financed (through production) mid-tier silver producer. And if their near-term
strategy, supported by a well-conceived business model is successful, they
shouldn't have to 'use a shovel' to get themselves onto the profit side of the
ledger.
Sinclair concludes: 'Any junior which has this opportunity,
should stop looking towards markets and go for that opportunity...if you have to
use a shovel!'
. . .The existing Rosario Mill Site is the linchpin in
the Silvermex plan to turn itself into a near-term silver producer.
Having in its possession a previously-permitted mill site, which can be
reconstructed and put back into production in a relatively short time, is a
major reason why management could be able to jump-start its efforts toward
moving into the producer league. . .significantly cutting down the time AND
dollars necessary to do so."
Arthur Brown - Ex CEO and Chairman, Hecla Mining Company
(11/18/09)
"After reviewing the technical data
and visiting Silvermex's core projects, I am quite confident that Silvermex has
a real opportunity to become a significant mining company in relatively short
time. The existing resources are high grade and near surface, in very wide
structures, and these are generally amenable to development with a low amount of
capital cost. The projects offer tremendous opportunity for resource growth.
I
am excited to join Silvermex and help to guide this dynamic team which is
committed to delivering shareholder value through a strategy of production at
its projects and growth thru exploration on its significant land position. The
ability for a young exploration company to attract such a talented Board of
Directors, speaks highly of the company's projects, management and future
prospects."
David Bond - silverminers.com -
(12/15/09)
"One of the first
companies out of the chute in what promises to be a robust December bull market
for precious metals is Silvermex Resources, Ltd. or as we might now call it,
Hecla Down South. In addition to a star-studded board of directors that now
includes former Hecla Exploration Veep Mike Callahan, Silvermex has rearranged
itself as a premier mining explorer and near-term producer of precious metals in
the Rosario District of Mexico, of Sinaloa State.
 Rosario is one of those properties you bump into in a
lifetime that is too good to be true, except that it is. With the wide, high
grade structures at San Marcial, San Juan and Plomosas and a trend of over 6
km's this could be heap of at least 100 million ounces of silver, on the
surface, not stepped out.
Mike Callahan will keep this project honest.
David Morgan jumped on this prospect over the turkey-day
weekend. We are a day late. But investing in Silvermex, we will not be a dollar
short."
Peter Grandich (02/2/09)
"Silvermex Resources Ltd. Was formed in 2005 and taken public in August of 2006 on the TSX
Venture Exchange (TSXV: SMR). The company's largest shareholder is Silver
Standard Resources Inc. (NASDAQ: SSRI).
Silvermex's
primary objective is to increase shareholder value through the acquisition and
development of near-surface, advanced-stage silver deposits in Mexico. The
company holds an impressive 85,000 acres of mineral claims located in Mexico's
most prolific mining production regions.
Bottom
Line: 42.4 million Oz silver resources (NI
43-101), 240 million lbs of lead and zinc (NI 43-101), 1.42 Oz silver resources
per share, 443% resource growth in last 24 months, High resource return on money raised, The lowest
market cap within its peer group, Low MCAP Value per OZ ($0.13 per Oz),
Near-surface, bulk-mineable projects, Proven management in Canada and
Mexico.
Investors looking for
undervalued situations which offer low MCAP valuations on established, in-ground
silver resources with superior leveraged exposure to increased resources and
silver prices, should consider this company carefully."
Trey Wasser: More Stars in the Mexican Precious Metals Universe (Part II) Interview (01/11/10)
"Silvermex is a new management story. CEO Duane Nelson has just brought on Mike
Callahan and Art Brown to help him manage the company. These are
retired Hecla executives who could make this a very exciting story in
2010. Duane also added two new board members, Joe Ovsenek and Ken
McNaughton. They both work for Silver Standard (TSX: SSO; Nasdaq: SSRI) and
have been involved in many significant discoveries and mine developments.
This quality of people doesn't get involved in a junior company unless
they really see something they like.
Silvermex has an option on the San Marcial property, a near-surface
deposit of over 20 million ounces of high- grade silver in Sinaloa
State. They also just bought the old Rosario Mine from Aurcana
Corporation. This is a mine that was operated by Grupo Mexico in the
1990s and was shut down due to labor issues and low metal prices. The
infrastructure at Rosario will allow Silvermex to fast-track San
Marcial into production. There is also a couple of years' worth of
production left behind by Grupo at Rosario that is very economical.
There is significant exploration potential at the old mine, at San
Marcial and within the district. Either of these projects on their own
may not have been developable without a lot more exploration, but
together they make a very powerful story and a near-term silver
producer."
Need we say more?
To sum it all up, here are some strong points that the above gentlemen have pointed out regarding Silvermex Resources (TSX-V:SMR):
- One of the most highly leveraged silver plays in the world
- Near-term silver producer
- Near-surface high grade deposits
- Bulk-mineable projects
- Superior leveraged exposure to increased resources and
silver prices
- Lowest market-cap value per ounce of silver compared to its peers
- Projects offer tremendous opportunity for resource growth
- Market
is currently giving little to no value for the infrastructure or production
potential in place at the San Marcial/Rosario Project and very little if any
value to the bulk-mineable portion of the deposits held
- High
leverage to an increase in resource estimates
- Phenomenal management team including executives who are more accustomed to running billion-dollar companies (they must really like Silvermex's
potential by jumping on board to a company worth less than $30 million in MCAP)
Silvermex Resources (TSX-V: SMR) is the real deal. It's not everyday you run into a junior company that has generated this kind of buzz and positive accolades from leading industry professionals.
If you haven't already taken a look at their most recent presentation, you can see it by clicking here or below. Then scroll down:
A picture is worth a thousand words and the presentation will surely give you a much better understanding regarding the sheer size and potential of what Silvermex Resources (TSX-V: SMR) has to offer.
If Silvermex Resources (TSX-V: SMR) is good enough to bring a CEO who built a $1.5 billion company out from retirement, it's good enough for us...
Until next week,
Questions?
Call Us Toll Free: 1-888-EQUEDIA (378-3342)
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The Right Way to Find Growth and Value Stocks
 Kevin Matras of Zacks Investment Research shows the right way to find great growth stocks at an excellent value, in this video segment of Zacks Screen of the Week
Click the video to play.
More Zacks videos:
> Growth & Income Stock Picks - January. 13, 2010
> Aggressive Growth Stock Picks - January 12, 2010
> Jobs Data and Earnings Season
> Value Stock Picks - January 11, 2010
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Cheap Oil is Gone, and That's Good News
 By Marin Katusa, Senior Energy Strategis, Casey`s Energy Report
Over the next year or two, you will likely find yourself paying a LOT
more at the gas pump. Big changes are taking place in the oil industry.
With increased global demand and declining supply, easy oil is not so
easy anymore.
Everything is about to get more expensive.
From gasoline to anti-freeze, life jackets to golf balls, and eye
glasses to fertilizer. There are very few things in the modern world
that aren't made from oil, made by machines dependant on oil, or
shipped by vehicles powered by oil.
The implications, at
first glance, appear to be the opposite of good news. In fact, it's
enough to strike panic in the hearts and wallets of the average
consumer.
And that's exactly why the International Energy
Agency just released its annual World Energy Outlook, clearly rejecting
the possibility that crude output is now in terminal decline. Their
attitude seems to be, what you don't know won't hurt you. For now that
is.
The truth however, is beginning to surface, and from an investor's perspective, the truth can mean money in the bank...
Click Here to Continue Reading
More Casey Research Articles
> What the Deflationists Are Missing
> "Get Your Gold the Hell Outta Here!"
> The Eye of the Storm
> What Likely Lurks Around the Corner
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Technical Trading with Harry Boxer
 Harry Boxer has more than 40 years of Wall Street investment and
technical analysis experience, including eight years on Wall Street as
chief technical analyst with three brokerage firms.
Going into the long weekend, Harry is going to cover some of the stocks
that he recommended and talked about on the short side just so you have
them at your finger tips in case we get a break in the market.
Watch the video as he walks you through his technical analysis on Changyou.com, Ebix Inc., Pool Corp, Syntel and a whole bunch of other stocks. To see more videos, Click Here. Like his analysis?
Click Here to receive a Free
15-Day Trial to Harry Boxer's Real-Time Technical Trading Diary for Equedia
members.
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Equedia's Newest Feature - Embed Videos
Is there a video on Youtube or another website that you want to post without uploading it through our technology?
With our new Embed feature enabled, you can now upload and embed any object or video into your blog post. Many of our users are already embedding videos from Fox, Youtube, and CNBC and sharing them with our users.
Embedding is simple. Just copy and paste the embed codes from another website ino the main blog section of your post (not the exceprt).
Where do you find these embed codes?
Embed codes for videos are usually right beside a video.
Here is an example of where the code is on Youtube, highlighted in yellow:
So share what you find with everyone! To learn more, feel free to email or call us at 1-888-EQUEDIA
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Equedia Tips - The Markets Tab
Using the search function at the top right corner of the website, search for any company. Let's use Research in Motion as an example. Once you reach their profile page, click on the MARKETS TAB. You should now see 12 seperate tabs underneath their logo. Try clicking on them and you will find in-depth information such as:
Detailed Quotes - Depth/Level II - Options - Java Charts - News - Profile - Financials - Insiders trades - Filings - Analyst Consensus - Earnings - Historical Data (Highs/Lows, Volumes, Closing/Opening Prices) |
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You can invite your friends to automatically join your network using your email contacts from:
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or
You can manually add your friends' email addresses by typing them in (or copy and pasting from any text documents)
Just log in with your username and password and click here:
So whether you are a media user or investor, invite your friends now and build your network of investment traders and professionals. Here are some obvious benefits to having a large network:
- Improved credibility to your work and news feeds - the more friends and people you have in your investment network, the more likely you will attract new friends and followers
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Of course, there are many more benefits to inviting your friends but should you give it a try yourself.
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Forward-Looking Statements
This Newsletter and report contains forward-looking statements. Forward looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expects", "plans, "anticipates", believes", "estimates", "predicts", "potential", or "continue or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, level of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect out current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggests herein. Except as required by applicable law the companies in this report do not intend to update any forward-looking statements to conform these statements to actual results.
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Companies Under Evaluation
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Disclaimer and Disclosure
Regarding Historical Data: All resource estimates presented in
this report for Silvermex other than their San Marcial project are
historical and were prepared before the introduction of National
Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI
43-101").
Historical resource estimates may not be relied upon
until they are confirmed using methods and standards that comply with
those required by NI 43-101. The potential for the exploration target
to replicate the historical resource, or to reach the indicated range
of tonnages, is conceptual and is based on historical reports, which
cite approximately lengths, widths, depths, grades and projections of
the historical resource. Readers are cautioned that a qualified person
has not completed sufficient exploration, test work or examination of
past work to define a resource that is currently compliant with NI
43-101 for historical resource estimates in the Silvermex Reports. We
further caution that there is a risk that exploration and test work
will not result in the delineation of such a currently compliant
resource. Neither Silvermex nor its personnel treat the historical
resource estimate or the historical data as defining a current mineral
resource, as defined under NI 43-101, nor do they rely upon the
estimate or the data for evaluation purposes; however, these data are
considered relevant and will be used to guide exploration as the
Company develops new data to support a current mineral/resource
estimate in accordance with the requirements of NI 43-101.
For
more information on Silvermex Resources, investors should review the
Company's registered filings that are available at www,sedar.com.
Disclaimer and Disclosure
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