Silvercorp going to $56+!
Today's Silvercorp Private Placement rapid over subscription tells me one thing: Silvercorp is finally getting on portfolio managers radar screens.
They are beginning to realize this phenomenal Silver growth stock that they, like I, feel carries little risk.
The only difference is that we have been in the stock since $6. They are getting in at $20.
But don't even think for one second that they are paying too much. Au contraire, my friend.
$20 is still super cheap. My new target for 2006 is $56.
In my opinion, the push up to $20 was done more by smart small to medium size investors. But now that we're at $20, the next stop is $56 because of the (I predict) constant hand over fist buying by both hedge fund managers and other portfolio managers!
How do I get $56? Well here is my super simple calculation using rounded number for simplicity:
-Silvercorp earns $35 million this year.
-That's about $0.80/share in earnings.
-Silver Wheaton's P/E ratio right now is 70.
-We times 70x0.80 to get $56/share.
Does that now seem reasonable to you?
Please realize how great of an opportunity we have to make some serious money here!
Like Gordon said, never fall in love with a stock. But who says you have to hate every one. As long as it's going up, it's a great stock to be in!
P.S. My caveman style calculation doesn't include possible acquisitions. Cathy has stated that this new cash will go directly into acquisitions so when I see what they buy, my target will probably go up even higher!