Portfolio Update-Silver Wheaton comments

For the first time (knock on wood) since I started this test portfolio all of my positions are acting in a positive way. The size of the account allows me to carry four stock positions in the $10-$15 range. Two positions are in the money and the other two are out of the money but above my purchase price. I have two options expiring next week and two in May.

Over the weekend I received the annual report from Silver Wheaton Corp. (SLW). The company seems to have a nice business plan. They have contracts to buy silver from several mines where silver is a by product of some other primary metal being mined. Currently the contracts have them purchasing the silver at $3.90 per oz and then sell on the open market where silver is almost $14 per oz. They have long term contracts, pay no taxes, and reinvest all profits into locking up more silver production. They have also invested in mines with silver reserves but no current production.

Silver is an extremely important metal in manufacturing, so I see good prospects for this company.

Note: On this stock I am selling further out of the money calls, so I can participate in the stock price appreciation.


One Response to “Portfolio Update-Silver Wheaton comments”

  1. T Says:

    Good post!
    I was looking for a few eclectic investments and this one appears very interesting. Right now, I am still wandering the jungles of worldwide alternative energy stocks and was anxious for a brief pause. This helps…thanks.

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