Wednesday, February 1, 2012

"SILVER WHEATON - SLW - looks like a great investment here with the Fed staying pat hand until 2014"

Dow Jones Industrial Average 12,660 (Down)  Week ending 01-27-2012

This was the week that the FED said that they were not going to do anything with interest rates until 2014. Hmmn??  Just a quick pick here this week based on that little tidbit of information.                                                                                 SILVER WHEATON, (Symbol SLW, $36.23, up today Feb 1st) is a company that according to their profile operates as a silver streaming company in the world. There are Eleven strong buy recommendations on this stock. 2011 earnings per share of $1.64 and projected 2012 earnings of $2.29 per share make this a very interesting story.  

SLW records a Net Profit margin of 75.3% and has a Total 3 year return of 448.1%. Starting to get the picture here? They even throw in a 1.01% dividend yield.  

Silver has had quite a run here and this may look like a trap trade based on history, but these are rampant deflationary times (especially in housing) and people will look to retain the value of their assets. Silver gives you a lot  more leverage than Gold because of the lower price point


The company also has a fantastic balance sheet. It has a current ratio of almost 6:1.

Have a good week. February usually presents some good opportunities for purchasing stocks.

Freewilly



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