Wednesday, May 9, 2012

Silver Wheaton (SLW) BUY!

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Both Gold & Silver are getting hit hard, however silver more so than gold as per the Gold/Silver Ratio. ITZ favorite Silver Wheaton (SLW) has also come down from it's recent high around $40.

 ITZ suggested entering a 1/2 position back on April 17th @ $30 and a 1/4 position on 5/8 @ $26.75. As I type SLW is bouncing from the morning low of $25.57 now $26.35.

The chart below highlights entry and exit points and is just one in several charts ITZ incorporates. Fundamentals are also compelling SLW earnings $1.55 in 2011; estimates for 2012 are $2.00 & 2013 $2.44. So around $26 a share it is selling a 13xs this year and 10.6xs forward...very attractive valuations. ITZ sees Silver Wheaton selling at a 20 pe/ and based on 2013 eps of $2.44 est. should trade near $50 next year....a 90% gain from here

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