Friday, September 2, 2011

SVM Update

40 comments:

  1. i have a better strategy: buy as many australian 2012 dragons as possible ^^ good luck trading

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  2. SGS

    Your call of Friday (today) at $44 is coming very close to fruition, so where do you see us next Friday? I know you said there might be a margin call soon, is that still in the works?

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  3. ya good luck getting your hands on those. lol

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  4. Hard to know what to do here. I've only got a small portion of SVM so any losing will be offset by my PSLV and phyzz positions. It all comes down to which crooks do you believe. The 'anonymous letter' rumor smacks of the old Rothschild scam to buy out half of England back in the 1800s. On the other hand, I've been hearing one reason businesses like McDonald's haven't made a bigger move into China is the Chinese penchant for cooking the books when given a franchise. SVM also has some mining operations in Canada so they are not completely a Chinese operation. I don't know to what extent they'd have to report any of their financial numbers to the Canadian govt too.

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  5. I think it's already been identified that the aren't any Australian Dragons available, but what about the 2012 Canadian dragons that started shipping from the RCM today. I have a feeling that it won't be long until they (48,888)are scooped up. Going to keep a close eye on SVM, I think there will be money to be made here, but not ready to buy in yet. Thought I missed the boat when it was selling below $8 a few days ago.

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  6. Guess I'm glad one of my juniors, ISVLF, has been kicking ass lately.

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  7. you can get 1/2 oz, 2 oz and 5 oz dragons at gainsville probably wont last long

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  8. @Thorfinnr

    Let's just say what happened to Sino Forest is one of the reasons why I'm staying away from SVM for the time being. Way too volatile for my taste.

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  9. I'm also impressed at how close to $44 silver got by today. At the time I thought, "really??" It was a ballsy call by SGS. Nicely done, sir.

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  10. Do any of you people buy AGQ (silver price X2)? It's a no-brainer that silver will go up, so why not double your winnings. Silver is up 4.1% today and AGQ is up 8.2%.

    You can sell when we get to the top and then buy physical with the extra money you made.

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  11. Do you think trading is that easy?

    Check www.freestockcharts.com symbol AGQ

    High April 28, 2011 = USD 382,08
    Low May 5, 2011 = USD 178,03

    Buy low, sell high. You sound like Buffet. ;)

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  12. reefman I bought 1 AGQ call When SGS said buy at 36. Those fuckers are expensive, im hoping to sell it when silver hits 49-50

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  13. LOL fuck me for not doing any research on SVM and for being a lemming. It could all be bullshit and the company is fine but I don't care to get taken to the woodshed even on the meager position I have. I fucking hate stocks. It's hard enough trying to figure out where the price of silver is going without also trying to figure out what sort of fuckery management is up to. Good luck to those who are sticking with it.

    Word verification for this post: "shiot." Yeah, that about sums it up.

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  14. It's very much like that May silver raid, ain't it? There's first a massive amount of shorts trapped in SVM just like Silver. Then there's a broker house bizarre margin hike on SVM like that what preceded the May raid. Then there's the pre-market HFT generated taking down just like May raid. All things pointed to the same style of coordinated attack on silver in May. I smell Morgue or sth of that nature again.

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  15. FYI I found something funny
    urban dictionary definition of nitsuj:
    (n) one who is obsessed with weaponry specifically guns and blades.

    How true

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  16. I have a call into the IR person at SVM...I'll let you guys/gals know if I learn anything meaningful. Really sucked for the long suffering SVM longs today.

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  17. nitsuj, I bought AGQ when silver was at $40.

    When silver goes to $50 that will be a 25% in the price of silver and a 50% increase in the price of AGQ.

    When silver goes to $60, that would be a 50% increase in the price of silver and a 100% increase in the price of AGQ.

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  18. reefman, look at your 1m, 3m, 6m results from holding AGQ or ZSL - even if the underlying has gains, the 2x long will be negative!!! don't hold these use them to hedge for daily / short term moves.

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  19. picked up AIG PUTS 1 min prior to the bell

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  20. I actually bought shares of SVM. Should I sell and buy back in at a drop or does everyone think this is the worst of it? Just curious. My PAAS is saving my ass right now.

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  21. Over 20 million shares of SVM were traded today..... :-0

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  22. I'm happy I had the opportunity to average down and get more calls of SVM at a cheaper price. Have 25 of the $15 Jan at an average price of $.42. I'll unwind some more if it gets back up to $.70 though and keep some for the ride.

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  23. From a poster on yahoo:

    "Can't fake cash-easily proven

    As former cpa and cfo of a public company this is an easy one. An auditor audits the balance sheet. 95% of SVM's current assets are cash and liquid investments. The whole audit is essentially independently confirming cash and investments with third parties. This is something that is the most basic audit procedure. You have their bank statements. You independently confirm cash.SVM really has no inventory or recievables. Fraud is usually done thru inventory or recievables which tend to get larger and larger. Cash doesn't get larger in fraud because you can't fake it."

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  24. Zoul, I am going to hold mine. My other casino gains from today just about equalled the purchase price of SVM for me. It was a fantastic day for Mr. Reefman. My Canadian side was up 3.14% and my US side was up a whopping 7.55% today.

    Now that I am home I am having a nice cold beer and about to enjoy this long weekend in Canada.

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  25. Gator:
    Using Yahoo finance, if I compare AGQ vs.SLV:

    Duration------SLV------AGQ
    1month-------5.93%----9.31%
    3months-----19.52%----33.81%
    6months-----24.65%----25.37% -> INCL. MAY1ST
    1year-------118.78%---255.64%

    So to me it looks like a much better deal to hold AGQ than SLV or other paper silver products.

    My goal would be to sell half when it goes up by 100% and use that to buy physical silver and sill have my original toilet paper money left over to do it all over again.

    I am playing with only a quarter of my casino money with this one.

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  26. Great insights SGS. Your vids are terrific.

    If anyone here has any doubts about silver's long term prospects, please read Israel Friedman's writings 2002-2010. He is Ted Butler's mentor. If you could read only one source he'd be the guy. You can find him at investmentrarities.com He doesn't write much, but his logic is inescapable.

    Every time the banksters sucker punch silver I reread IF and sleep like a baby holding phyzz.

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  27. This comment has been removed by the author.

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  28. I am extremely worried about SVM but I think they will pull through and have a huge rally. (hopefully)

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  29. Ack... I bought SVM... to sell would be small loss, but maybe I'll just sell out Tuesday. Probably just stick with the metals from now on. Wish PSLV didn't have 20% premium.

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  30. Is that all it takes to get a stock to move? Some dick wagger who can spell? Picked up some cheap OTM calls today. If they work out, I'll be balls deep in fiat. People are forgetting that they got ounces in the ground. Proven reserves too. Fuck what they got in the bank.

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  31. zepster try CEF.A low/no premium

    SVM really smells like a false takedown, shorts covering scam. I have a fuck-load, at 7.89, and thought I was smart around 9. These guys were pro-active getting their defense up, buying shares. If I had real balls, i would have doubled down today, but like I said, I'm deep already. Yikes.

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  32. LOL @ that goofball Weather UNIT. I find this blog very informative and give credit to SGS for hepping me to the ulterior motive behind SVM's NCIB, but anyone who buys a stock just because SGS says so is an idiot. I went to the Silvercorp website and read their news releases and looked over their financial reports back to Q1 of 2010 before I bought. I'd never buy a stock in a company without researching it first, and neither should anyone else.

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  33. Another thing is to definitely know where a company is mining before you buy with all the nationalization, cost of production and taxation issues.

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  34. Hi all, I've been lurking here for awhile and have enjoyed the blog a great deal. SVM was painful today. It comes with the territory in this sector which seems to be the punching bag for every short seller out there. Originally, it was the investment banks which would short the hell out of any junior they lent money too, then the hedgies got in on the action. This play against SVM was particularly nasty in that it seemed to be a coordinated effort, first with margin hikes, then with the rumors. It had all the hallmarks of a big powerful player. I suspect when silver broke out last evening, the short had to go into full destroy mode to keep from getting smoked. It worked because most of the small retail investors decided to run for greener pastures, and I guess I can't blame them. I am going to hang in there and was buying JAN 12 calls today. My information is the same as everyone else, but I have been following SVM, occasionally in and out of the stock since 06. The management team has done a fair job under sometimes difficult market circumstances, and I have never known them to lie or exaggerate. I don't believe the fraud accusations from an anonymous, yet well capitalized short seller. If the short was credible they wouldn't hide. The miners are always going to be plagued by these type of criminal antics until they start fighting fire with fire in the way of big dividends. Why more of them don't do that is beyond me. SVM should snuff the short by announcing a big divi increase.

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  35. End of this month SVM will pay a small dividend of CAD 0,02.

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  36. This story reminds me of The Children's Investment Fund and the Dutch bank ABN AMRO:

    http://online.wsj.com/public/resources/documents/tciletter-0918.pdf

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  37. Towards the end of the day on Friday, IB sent out a bulletin that SVM shares were no longer available for short sale, so it seems like the shorts had really piled on. I believe it is possible to stop your own shares from being borrowed and shorted by placing a limit order to sell at some price well above the current price. Anyone holding long should consider doing that.

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  38. Good day for SVM, congrats to anyone who btfd.

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