silver mines option (SVLOB)

Discussion in 'Stocks & Derivatives' started by Slimey, Oct 14, 2019.

  1. Slimey

    Slimey Active Member

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    Thoughts please folks.....
    6 cent price in September 2021....currently about 5.4 cents......that makes it 11.4 cents....
    Could be a better speculative buy than SLV.
    (My greedy nature has lost me a lot of money and here I go again....I never learn.)
     
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  2. Bobsydney

    Bobsydney Member

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    Svl the safer option.
     
  3. scott_reeve

    scott_reeve Active Member

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    Assuming you'd be holding SVLOB over the longer-term. Obviously, many market risks between now and expiry date. Global market conditions, Silver price, currency fluctuations (SVL largely exposed to Australian silver prices), access to financing, turnover of major shareholders on register etc. etc.

    How many CRs will SVL do between now and Options expiry?, further diluting shareholders.

    By way of comparison SVL had the following Shares on Issue (SOI):
    End 2010: 106.6 million
    End 2015: 4.7 billion
    June 2016:
    * SVL buys Bowdens Project
    * SOI balloon to almost 24 billion
    * 100 to 1 share consolidation brings SOI back to 23.4 million
    Nov 2019: SOI reinflated to 867 million

    While SVL has acquired some projects over the last decade, the amount of CRs and explosion on SOI has continually diluted shareholders investments. It looks like SVL typically does 1-3 CR's per year. It would also be interesting on how many stale SVL shareholders were flushed out over the last 4 months while SVL's price and volume improved. The more that have been flushed out, the less potential overhead Resistance on SVL's chart.

    Also, it appears that SVL's recent strong move since mid-July mirror's closely to the price of Silver move from US$15. At some point this could be decoupled (happens to gold stocks all the time). All stocks move on market sentiment, and more often than not silver companies fall out of favour with ASX investors. ASX silver stocks have had a terrible track record over the last 10 years and this could extend for many years to come.
     
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  4. Slimey

    Slimey Active Member

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    Thank you for adding clarity scoot_reeve. Some hard to ignore facts.
     
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