Tuesday, April 13, 2010

endeavour silver (TSX:EDR)

addendum april 15th, 2014: i know what is the problem with the low, low, low gold + silver prices in 2013 + 2014, my dears. well, there was an investors' lunch event in munich few days ago and endeavour was also there. it was a nice update about the company, which mastered to reach a output of 6.8m ounces of silver in 2013, but you know what? two of its 3 mexican silver mines produce silver at all-in-cost around or even below the current silver price, which is $19.5 per ounce today. got it? there are producers who earn no money or even lose money to over-supply the market at these  low, low, low gold + silver prices. of course the price can't go up if there is sooooo much supply even at these levels. what will the producers do if the metal prices go up? probably complain that they have no gold/silver left as they've sold it so cheap in 2013 + 2014 ... supply + demand pattern, as so often in the long run 

1oz silver from endeavour silver

what about the investors' lunch with endeavour silver representatives 2day? hmmmmmm, i think i'm rather the folk festival than the noble restaurant type of guy, you know? well, of course it was delicious, all that small portions on huge plates with funny decoration, tasty wine, etc.  ... 

OMG! do u know what did i like most? the surprise gift ~ the nice company's 1 oz silver coin! well, i'm probably more an investor than a good eater :-). yabbadabbadooo, my growing collection of 'my' silver companies silver coins now includes:
  • endeavour silver
  • first majestic silver
  • scorpio mining
  • nevada pacific gold (that company doesn't exist any more! btw, do u think about old, old, old silver roman coins right now? do they still have any value? is silver better than paper? any other thoughts?)
what about endeavour silver? of course, i enjoyed the chance 2 meet the old-known-faces behind the company in munich again! of course, i own already few shares of that promising silver producer. of course, i increased my endeavour holdings after that damned crashy october 2008, so my position is +115.56% right now. what's the best? well, there is NOTHING TO WORRY about! they have 2 profitable operating silver mines, they are looking for the 3rd mine (exploration vs. acquisition), there is no further need to dilute the existing share base as the cash-flow provides enough money in order to finance future growth (unless there would be some major acquisition opportunity out there), the production records should continue further and, in the long term, the silver price increase could continue as well, so the share price should go up, isn't it? 

so what to do? well, let's lean back + enjoy the company's development + the rising share price of that IMHO low-risk portfolio position + let's hope if there will be some significant company and/or market related price corrections on the road i will be wise enough and still solvent to increase my endeavour position on dips :-)

1oz silver, endeavour silver


addendum june 6th, 2010: folks, i've just bought few more shares of EDR (@ CAD 3.52) today. they've have been somehow stronger than their peer group in recent general market correction, let's interpret that as relative strength ... LOL

successful endeavours + good luck, my dear endeavour silver 
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