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« Silver Prices Recovering After Drop and Our BUY Signal | Main | Silver-Prices.net: Portfolio Update 21 August 2007 »
Thursday
Aug232007

Pan American Silver Corporation: BUY

PAAS Coins 23Aug07

Excuse the pun but this is a golden opportunity to add to our holdings of this premier silver stock. It has been dramatically oversold as all the precious metals exploration and mining companies were sold off in what we can only describe as panic resulting in capitulation.

Yesterday savvy investors, who are currently searching the wreckage looking to salvage quality stocks from the debris, saw the value in this stock bidding it up by a $1.87 for a gain of 8.5%.
(As indeed we took the opportunity to accumulate SSRI)

The market capitalisation of PAAS is $1.82 billion and the P/E Ratio is down to 22.12 with 76.48 million shares outstanding. The companies’ recent quarterly results were excellent as summarised below:

“Record quarterly silver production of 4.2 million ounces, up 27% over Q2 2006.
Net income of $18.5 million ($0.24/share), up from $15.0 million ($0.21/share) in Q2 2006.
Record quarterly cash flow of $31.5 million, before changes in non-cash working capital.
Sales up 26% over Q2 2006 to $79.2 million.
Alamo Dorado in commercial production as of April 1, 2007.
Operating improvements at La Colorada resulted in a 7% production increase.
San Vicente ownership increased to 95% and mine expansion project initiated.
Construction at Manantial Espejo mine over 33% complete.”



Now just look at this chart, it clearly demonstrates that PAAS has been oversold for no other reason than a general market sell off.

PAAS Chart:

PAAS Chart 23 August 07

We can see that the recovery of the share price has now begun.
The technical indicators have turned positive presenting a buying opportunity.

The companies’ mission Statement remains the same:

Pan American Silver's objective is to become the largest primary silver producer in the world with annual silver production growing to 25 million ounces per year by 2009.

We made a further purchase today at $24.10

Pan American Silver Corporation can be found on the NASDAQ under the symbol PAAS and on the Toronto Stock Exchange under the symbol PAA.

Enjoy today.

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