4 Silver Stocks That Could Turn Their

Fortunes Around
by Josh Enomoto | May 5, 2015 10:45 am
4 Silver Stocks That Could Turn Their Fortunes Around
Despite fundamental drivers that theoretically should support higher
commodity prices particularly mixed economic performances that cast a
shadow on the Federal Reserves implementation of hawkish monetary policy
silver prices have been relatively dormant.

Click to Enlarge Year-to-date, the popular iShares Silver Trust

(ETF) (NYSEARCA:SLV[1]) is up 4.25%, which hardly makes up for the
massive losses in silver and silver stocks suffered in 2013 and 2014.
Nevertheless, the fact that the silver market is up is a dramatic reversal from
recent action.
For example, spot silver prices have refused to fall below the $15 level, which
represents a key technical support line. Against a long-term chart, the current
price of $16.46 allows silver to maintain a generally bullish posture.
Additionally, gold bullion has been purchased in large volume over the past
week, likely due to short covering.

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Because gold and silver markets tend to have a correlated relationship, recent
events in the precious metals space might hint at higher prices for both metals.

Subsequently, this bodes well for silver stocks, with several producers
scheduled to release their earnings reports later this week. Should the
underlying silver market continue to hold off the bears and string together a
series of positive trades, investing in silver mining companies could potentially
lead to very handsome rewards.
That said, here are four silver stocks that could be ready to shake up Wall
Street.
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Silver Stocks: First Majestic Silver Corp (AG)

Securing a private placement deal with BMO Capital Markets worth nearly $25
million, First Majestic Silver Corp (NYSE:AG[2]) plans to hasten its ongoing
mining development projects. Its management team also accomplished what
few companies in volatile industries have achieved: raising money in depressed
markets.

This bit of good news is a welcome change. Over the past 13 earnings reports,
only two have met or exceeded Wall Street expectations. However, there are
subtle indications that the tide is turning. The last earnings report released
on Feb. 23 of this year beat consensus estimates, breaking a four-quarter
losing streak.
In addition, the velocity of AG stocks performance after its earnings release
expanded dramatically. A month after First Majestic reported its Q4 2014
results, AG stock fell a little more than 10%. However, after Q3 results were
released, AGs price dropped nearly 14%. Though both figures are in the red,
the silver stocks most recent performance represents a 26% improvement
between the two quarters.
The major caveat is that historically, First Majestic has been a capricious
investment. But for those willing to ride its ebb and flow, AG stock offers
tremendous return potential.
First Majestic Silver reports earnings May 7 before the bell.
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Silver Stocks: Silver Wheaton Corp. (USA) (SLW)

As one of the stalwarts of the precious metals mining industry, its no surprise
that Silver Wheaton Corp. (USA) (NYSE:SLW[3]) is one of the more stable
silver stocks. Despite also suffering from the downdraft of the metals complex,
Wall Street traders believe that SLW stock has bottomed and should press
higher from current price levels. This assumption derives from recent highvolume options market activities.
Investors also can refer to SLW stocks performance a month after its earnings
reports are released. Since November 2012, the velocity of SLW has generally
increased, charting a series of higher highs and higher lows, to borrow a
technical analysis terminology. That this trend remains largely unbroken in the
face of some ugly fiscal performances by Silver Wheaton lends much-needed
confidence for investors willing to take on the risks inherent here.
Coincidentally, SLW does have statistical trends working in its favor. Over the
past five weeks, its net performance measures 0.59% a figure that in the past
has led to a 60% probability of higher returns within the next five weeks.

The trade-off between the higher probabilities of Silver Wheaton as opposed to

smaller-cap companies like First Majestic is in the returns. Naturally, more
speculative opportunities provide higher profit potential. However, the relative
stability of SLW makes it attractive for those who wish to balance out the riskreward component of their trades.
Silver Wheaton reports May 7 after the bell.
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Silver Stocks: Endeavour Silver Corp (EXK)

Fundamentally, Endeavour Silver Corp (NYSE:EXK[4]) carries substantial

momentum heading into its first-quarter earnings report, scheduled to be
released on May 6 before the bell. A preview of Endeavours financial
performance revealed that its silver production rate advanced further than

originally forecast for this year, with 1.8 million ounces of the white metal
already mined.
Furthermore, investor sentiment for EXK stock, as measured by its one-month
performance after earnings release, has been steadily rising higher since March
of last year. This is especially noteworthy considering that the last two earnings
results for Endeavour were particularly awful, with an
average negative surprise of 99.65%. It begs the question: how will EXK stock
respond when earnings are positive, which appears to be likely.
Although the answer may very well be bullish, it must be noted that EXK is
historically a very volatile stock. Given that its five-week average performance
is a paltry 0.15%, EXK statistically has a low probability of 38% that by June,
its shares will be profitable. However, its most recent week-over-week
performance is a robust 6.84%, which may suggest that professional traders are
gambling for a positive earnings result.
For those who thrive on high-stakes poker, Endeavour Silver just might be the
deal of the year.
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Silver Stocks: Great Panther Silver Ltd (USA) (GPL)

With a market capitalization a hair above $75 million, and a price under
$1, Great Panther Silver Ltd (USA) (NYSEMKT:GPL[5]) is easily one of the
more volatile silver stocks available for trading.
Translation: Trade with care. Use limit orders and stop losses.
Although there are fundamental factors that are favorable for GPL stock, such
as the recently announced acquisition of Cangold
Limited (OTCMKTS:CGLJF[6]), investors have shown little evidence of
enthusiasm. For instance, since the week of the acquisition announcement, GPL
has fallen nearly 13% in the markets. Additionally, with only one analysis firm
covering Great Panther, news about the company is seldom reported.
Technically, however, there is some rationale for bullish optimism. When
looking at a logarithmic-scaled chart of GPL stocks four-week running
average price history, its fairly evident that bearish pressure has been declining

since the beginning of the year. This is aligned with similar trends amongst
other silver stocks and within the silver bullion market itself.
A positive earnings result on May 6 after the bell could do wonders for GPL,
with many investors looking for a reason to reengage the silver producer. This
also will depend on the underlying bullion market, which so far is holding
strongly at established support levels.