Silver Wheaton placed 3rd in Top 10 Most Efficient Basic Materials Stocks
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| Topic: Silver Mining Companies — February 22nd, 2010
This is an excerpt taken from a list of the top ten Most Efficient Basic Materials Stocks compiled by the China Analyst which currently places one of our favourites, Silver Wheaton Corporation (SLW) in 3rd place behind Royal Gold Incorporated and Terra Nitrogen Company and just ahead of Goldcorp Incorporated.
Royal Gold, Inc. (NASDAQ:RGLD) is the 1st most efficient company in this segment of the market. Its earnings per employee was $1,657,350 for the last 12 months. Its revenue per employee was $5,196,150 for the same period.
Terra Nitrogen Company, L.P. (NYSE:TNH) is the 2nd most efficient company in this segment of the market. Its earnings per employee was $1,411,650 for the last 12 months. Its revenue per employee was $3,967,794 for the same period.
Silver Wheaton Corp. (USA) (NYSE:SLW) is the 3rd most efficient company in this segment of the market. Its earnings per employee was $646,100 for the last 12 months. Its revenue per employee was $8,873,350 for the same period.
To read the article in full please click here.
Its pleasing to us to see one of our favourite silver producing stocks is being so highly rated amongst such prestigious companies. When silver hits the straps we expect Silver Wheaton to do very well indeed.
Hold on to this stock there is more to come.
All the best.
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Nothing like the royalty companies for “efficiency.” Thanks to Pierre Lassonde for that great model.
That Goldcorp ranks as high as it does is a tribute, as they actually mine the stuff.
Comment by fallingman — February 24, 2010 @ 3:06 pm
while you guys are celebrating, i am preparing for a new market crash wave in march. all these stocks are gonna drop quickly. and if i am not wrong with the name, silver weaton is not a producer , it is a reseller, they have small inventories and make money on the spread. this means their assets are mostly cash, such company can be closed in minutes , stocks sold off, and the cash can go into any other profitable industry, while leaving you with worthless paper. i would better speculate on silver contract directly rather than buy any stock like this (and at such high price)
Comment by Di — February 24, 2010 @ 3:34 pm
With all due respect, what are you talking about?
Celebrating? Huh? Just noting that SLW operates under a very efficient business model with extremely low overhead costs. The model was pioneered by the humble genius, Pierre Lassonde and his partner,Seymour Schuhlich, when they created the original Franco Nevada. They made me a small fortune during a terrible gold market. Thank you gentlemen. Ever heard of it…or them?
Reseller? Huh? What exactly would an NYSE listed “silver reseller” do? You’re talking gibberish.
SLW is a ROYALTY company. I’d think anyone frequenting this site would know that.
I don’t know, maybe it’s just me, but I find that it helps to have some idea what you’re talking about before you offer an opinion of something, especially a categorical opinion. Keeps you from looking like a fool. Just a thought.
I’m hoping the silver stocks, including SLW, do drop sharply again. If they do, buy with both fists. That’s what I did on 10/23/08 when SLW was at $3.43. Talk about a stupid overeaction. I’ve sold off most of that batch through covered calls at 12.5 and 14. I’m underweight now. Been waiting for the JJ Morgan smackdown and I’m afraid they may have already brought their best and this is all the selloff we get. Long term, it’ll be hard to lose with this one and I plan to buy every dip and every evisceration.
Even without a silver price rise, they should do well, because they’re consistently growing the number of very favorable royalty deals they have in place. And a jump in silver will supercharge this stock.
Silver could easily tank if we get credit revulsion part deux or it could take off like a rocket at any time and never look back. Deal with the uncertainty. Make money no matter what. It isn’t that hard unless you get locked into to KNOWING for certain what just has to happen.
Comment by fallingman — February 24, 2010 @ 5:26 pm
Interesting article but from my viewpoint I’m always stunned at how much money they spend on G & A. For the 3 quarters ending Sept. 30, they spent $13 million. They have 20 – 25 employees.
What do these people do?
All that needs to be done is open the envelopes containing the royalty cheques and deposit them in the bank. Two others on the list, Goldcorp & Cameco, have thousands of employees and are in the mining business. I’m impressed with that. Pierre Lasonde and Seymour Schulich ran two of the greatest royalty companies ever…Euro Nevada and Franco Nevada and I believe they had 5 or 6 employees.
Silver Wheaton really should be embarrassed by placing 3rd on this list. They should be #1….. by a wide margin.
Comment by H — February 24, 2010 @ 7:03 pm
I love reading these comments. I have always supported majority rule so I go with the majority opinion and in this case the wise old owls have spoken. Thanks guys.
John
Comment by John Ell — February 24, 2010 @ 8:58 pm
SlW and SSRI are the KING and QUEEN of the silver world.
When spot prices start goin up again they will rocket.
Right now I think everybody is thinking they can get more bang for their buck with SLW but they are both top notch companies that will, if you put enough into them, get you to retirement. And if I had to pick a bishop it would be SVM. The knight would be HL and the Joker would be CDE.
Watch and see the minute silver starts to come back who are the percentage leaders. Anybody who badmouths SLW and SSRI is not worth talking to or listening to because they are just plain IGNORANT of the facts.
Comment by Silversurfer — February 24, 2010 @ 11:18 pm
I hope the crew here sold their calls before this crapfall. I’ll be waiting for a good entry price for SLW in the meantime. Right now I am short the general market.
Comment by David — February 25, 2010 @ 4:27 pm
David,
No we have not sold our Call Options and as we publish every trade immediately you would be aware if we had. SLW is trading at $15.00 as we write.
Comment by Silver Prices — February 25, 2010 @ 6:58 pm
Silversurfer,
We agree that SSRI is a good un, thats why we own it, however when a CEO steps down without a replacement being announced it creates some uncertainty, which the market is not keen on.
We will hold and observe for now.
Comment by Silver Prices — February 25, 2010 @ 7:01 pm