This is a real shame that such a well-managed stock is suffering at the moment.

From the chart we can see that a recovery has begun and that the technical indicators are heading north however as an investment we are not impressed. Stock performance is all about comparative analysis and when compared to other silver stocks in this sector CDE pales badly.

PAAS and SSRI have out performed CDE by a long way so we have to ask the question of why do we still have our hard earned money in this stock? Well we had hoped that the Bolivian political situation would only affect the stock for a short time but on reflection that does not appear to be the case. Our conclusion is not fight this stock but realise that this situation may persist for a long time to come, in which case we have got to move on.

There is nothing more distressing than being in a Bull Market but on the wrong stock. We will reduce our holdings from here and place CDE on the Watch List just in case the environment becomes friendlier towards CDE.

25 January 07