COEUR D ALENE MINES: The shadow of Bolivian politics
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| Topic: Silver Mining Companies — January 11th, 2007
It’s a pity that the geopolitical situation in Bolivia is casting a huge shadow over CDE, which in our opinion is one of the best silver mining companies around today.
From the chart we can see that CDE has taken a battering and looks to be in a in a beaten state. Has this silver stock now found a support level, which incorporates the political situation, or could it drop further? The question now is where do we go from here? Do we sell and take a small loss, do we buy more and average down or do we continue to observe?
An anti capitalist government wishing to use its weight does not fill us with confidence. Can the management at CDE negotiate their way through this minefield and strike a win-win deal with present government? Its all a little hazy and does not get any clearer with contradictory statements coming out of La Paz on a seemingly daily basis.
For now we will remain patient and observe the movements of the market. Market perception is a powerful tool and should not be ignored. If a recovery begins to show itself then we may well put more money in to this stock to reduce our average price.
Be patient for now.
Coeur de Alene Mines trades as CDE on the NYSE.
11 January 2007
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Some years back, Doug Casey termed CDA as being “Notoriously badly managed>” Doug is so experienced, and so successful at ananlyzing junior mining companies, that one should never take his statements lightly.
Recntly I opened up CDA on MSN Money &then clicked on “Insider trades” Egad, what a mess of options! Worse yet, no strike prices were listed!! Hell, for all any of us peons know,those hundreds of thousands of shares could be picked up at one penny apiece! The President Dennis Wheeler had been awarded the largest bundle of rights.
Now normally, one would expect teh Board of Directors to stop such greedy antics. But looking at the large number of persons being awarded the rights, my bet is most of those are Directors of CDA!
If asked for an opinion, one would say the primary purpose of the administrators of CDA is not to mine for silver! Instead, the mining operation is just an front for all those greedy officers/direcrors to mine the market!
All of this is too damn bad because silver has a much higher percentage to rise before it hits that $50 mark (of the Bunker Hunt days) than does gold. Also, the number of straight silver mining companies is pitifully small, compared to the number of gold mines.
In the long run, CDA will rise when the public finally panics & concludes they should get the hell out of paper dollars. But you can damn well figure every time the stock rises a bit, it will get hit with multi-thousands of options being exercised, and multi-thousands of shares sold into the market. And not one nickle has been paid for those shares!
Any broker with any smarts will have a damn thing to do with CDA! As one of my broker pals would say “I hope the stock goes to 100, and if it does, it will go there without me!”
So, go ahead, check the “Insider trades” on CDA & come to your own conclusion. And while you are at it, do the same for HL—-Hecla Mining. Same story. Too bad, it used to be the queen of silver mining.
I think the way to go is SLW—a beautiful business concept, and cheap as hell, too. It was put together by a brilliant mind which is now doing the same thing with a new company, UXG—US Gold, now selling for $2.85
Comment by henry j bendinelli — July 7, 2009 @ 6:16 pm