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Many of the speakers at the Calgary Resource Conference mentioned that using technical analysis is a good way to pick entry points into stocks you like.

I have always been very cautious with technical analysis but I am starting to learn more about it. And the more I learn, the more I like it. Whether it will make me more money, I'll let you know.

Anyways, Silvercorp has been consolidating now for a couple weeks after it's huge money making run and I think it is getting ready for blast off once again.

Take a look at this chart and some of the markings I added:

For those of you who are not familiar with technical analysis, here is a wonderful description and example of Double Bottoms. 

What we need now is a push past $21. I am quite sure that the financing will close tomorrow and there will be a news release. (Bob Bishop, one of the best newsletter writers, mentioned that buying a stock during its financing is usually profitable.) Then it looks like the push towards $56, my target, should continue.

Surprisingly for me, sentiment of a couple of the speakers at the Resource Conference toward Silvercorp was not that great. I talked to Eric Coffin and he did admit that Silvercorp grades are "through the roof". He said he wishes he "caught it earlier". But if he'd be a buyer right now, he wasn't sure.

Lawrence Roulston, said that Silvercorp is good but he wouldn't buy it at these prices. He said the upside is maybe 50% but he said he'd rather try to find lower priced stocks with potential returns much more than that.

Although I greatly respect both of these writers, I think they will continue to be surprised by Silvercorp's returns.  

Cathy reiterated that Silvercorp's goal is to earn $29 million (USD) profit for the year. That translates to about $0.73 per share with the financing's extra shares taken into account. Based on today's price of $19, that is a forward p/e ratio of only 26. Silver Wheaton's forward p/e should be around 42. So just based to this comparison, Silvercorp should be valued over $30.66 per share at the very least.

But I think that Silvercorp can create another $25 per share of value through their upcoming acquisitions, amex listing and resource updates over the coming year.

So the future of Silvercorp looks as bright as ever! I think that Silvercorp is going to become the Goldcorp of Silver. That means the lowest cost Silver producer in the world!