Thursday, July 12, 2007

Silver Wheaton (SLW-T)

I tried out my brokerage's automated telephone trading system today and ended up investing in Silver Wheaton (SLW-T). Now, I must admit that I let my emotions affect my limit purchase price on this one as I've missed out on some pretty amazing trades so far this month due to being low limit prices and I wasn't going to miss out on this opportunity.

As you can see on the three-year weekly chart below, an ascending triangle has formed which would suggest a ~$20 target price if the current breakout continues in the weeks and months ahead.

I must admit that the target price is very optimistic but I've seen stranger things happen.

Background info: 100% of Silver Wheaton's revenue comes from the sale of silver. Having silver purchase contracts with five separate mines, the Company expects to sell approximately 15 million ounces of silver in 2007, growing to 23 million ounces by 2009. It also trades on the NYSE as SLW.

The closing silver bid /ask on Kitco was $13.09 / $13.13.
Silver Wheaton's closing price today was $14.83 on the TSX.

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