BloggingStocks

Silver Wheaton (SLW) slides as metals futures tumble

Brent Archer — Mon, 10 Mar 2008 14:02:00 EST

Filed under: Major Movement, Bad News, Options, Technical Analysis, Silver Wheaton (SLW), Commodities

Silver Wheaton Corp. (NYSE: SLW) stock is declining today, as silver futures are trading lower by more than 3%. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on SLW.

After hitting a one-year low of $8.83 last March, the stock hit a one-year high of $19.16 in January. This morning, SLW opened at $17.93. So far today the stock has hit a low of $17.12 and a high of $17.93. As of 12:45, SLW is trading at $17.48, down 71 cents (-3.9%). The chart for SLW looks bullish and steady.

For a bearish hedged play on this stock, I would consider a June bear-call credit spread above the $22.50 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. This particular trade will make an 8.7% return in three and a half months as long as SLW is below $22.50 at June expiration. Silver Wheaton would have to rise by more than 29% before we would start to lose money.

SLW hasn't been above $20 at all in the past year and has shown resistance around $18.50 recently. This trade could be risky if the price of silver and other precious metals continues to rise at a meteoric rate, but even if that happens, this position could be protected by resistance SLW might find just above $19, where the stock topped out back in January.

Brent Archer is an options analyst and writer at Investors Observer. At publication time, Brent neither owns nor controls positions in SLW.

Silver Wheaton (SLW) slides as metals futures tumble originally appeared on BloggingStocks on Mon, 10 Mar 2008 14:02:00 EST. Please see our terms for use of feeds.

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The 52-week high club

Douglas McIntyre — Wed, 02 Jan 2008 16:51:00 EST

Filed under: After the Bell, Suntech Power Hldgs ADS (STP)

This would seem to be a hard day to find stocks hitting new highs, but some industries produced winners.

Silver Wheaton Corp. (NYSE: SLW): It was a good day for metals stocks. This one ran up to $19.16 against a 52-week low of $8.83.

Southwestern Energy Company (NYSE: SWN): It was a good day for energy stocks. SWN moved higher to $58.63 from 52-week low of $31.14.

Peabody Energy Corporation (NYSE: BTU): This coal company traded up to $63.97 from 52-week low of $36.20.

Apache Corporation (NYSE: APA): This oil and natural gas operator hit $111.78 compared to 52-week low of $63.01.

Akeena Solar, Inc. (NASDAQ: AKNS): This company licensed technology to Suntech Power Holdings Co., Ltd.(ADR) (NYSE: STP). It moved to $11.99 from 52-week low of $2.97.

Douglas A. McIntyre is an editor at 247wallst.com.

The 52-week high club originally appeared on BloggingStocks on Wed, 02 Jan 2008 16:51:00 EST. Please see our terms for use of feeds.

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Best Stocks for 2008: Silver Wheaton (SLW) sees 'surging' demand

Steven Halpern — Sun, 23 Dec 2007 16:45:00 EST

Filed under: International Markets, India, China, Newsletters, Silver Wheaton (SLW), Commodities, Stocks to Buy, Best Stocks for 2008

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"The commodity bull market has a long way to run," says Martin Weiss, editor of Money & Markets. "And while individual stocks are inherently more risky than funds, they also have more potential upside. And one area with a lot of upside potential is silver. As such, my top speculative pick for 2008 is Silver Wheaton (NYSE: SLW).

"Silver should ride a tidal wave of fundamentals higher in 2008. Above-ground stockpiles are getting very low, new mine production is lagging, industrial demand is surging and jewelry demand is growing in both China and India.

"And then there's the demand from silver exchange-traded funds, such as iShares Silver Trust (NYSE: SLV), which held over 161 million ounces of silver as of December 7, and keeps growing. India doesn't have a silver ETF yet but should have one in 2008 -- that will bring more demand to bear on the market.

"Silver Wheaton gets 100% of its revenue from silver, and has outperformed both gold and silver this year. It purchases silver from operating mines at a set rate, less than $4 per ounce, insulating it from rising costs. Its production should come in at 13 million ounces in 2007 and rise to 25 million ounces by 2010. Finally, Silver Wheaton has 362.2 million ounces in proven and probable silver reserves.

"The stock isn't cheap, but it is outperforming both gold and silver. And I expect precious metals to head much higher in 2008. Overall, I consider this a red-hot silver play."

Best Stocks for 2008: Silver Wheaton (SLW) sees 'surging' demand originally appeared on BloggingStocks on Sun, 23 Dec 2007 16:45:00 EST. Please see our terms for use of feeds.

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