A Silver Stock Market Opportunity
Kudos to the New York Stock Exchange (NYSE) for adding the argent feathers of the Silver Wheaton Corporation to its gem-studded cap! This Vancouver, British Columbia based company trades in silver from mines as far apart as Mexico and Sweden. It shed a downstream subsidiary in locksmith and security businesses in 2004, to focus sharply on silver mining. The top notch management team has a new leader with an eminent track record in company development.
Silver Wheaton expects to sell over 15 million ounces of silver this year. Peter Barnes, the President and CEO, expects the company to touch sales of 20 million ounces a year by 2009. The scrip has traded between $3.07 in July 2005 and $11.75 in April 2006. The company has a market capitalization of just under $2 billion and a Price to Earnings ration of over 46. 2005 revenues were about $71 million, with a net income of $25 million. The company’s exclusive arrangements with top mines all over the world, give it extraordinary competitive strength and resilience.
Few metals have the versatile properties of silver. Though its ancient uses in coinage and jewelry endure, doctors have learnt to use it to protect wounds from infection and engineers revel in its electricity and heat conducting virtues. Silver Wheaton is just right to manage the multi-faceted potential of this precious gift from Mother Earth, and NYSE has the appropriate base of investors who can appreciate the timeless qualities of this scrip.