4065 days ago
I spent two years working along Sam Bottell as he worked with minesite.com and oilbarrel.com and he is a good, honest and clever chap. Now that he is starting his career freelance writing as well as an organiser of the UKInvestor Show I have no hesitation in helping him along via this blog as a guest contributor. As such I bring to your attention a piece on FTSE 250 listed Hochschild Mining. Sam writes...
It has not been the greatest call of my career. I rated shares in silver miner Hochschild Mining (HOC) as a buy here at 424.9p less than two months ago. The shares now stand at 352p and self-evidently there is a bit of egg on my face. Was my call wrong? Are the shares even cheaper today?
To be fair to myself one of the attractions of buying this company is that it is the only serious, well managed pure silver producer listed in London. That still remains the case. Those of us who are long term silver bulls can buy the stock and as silver increases sharply during the next few years we will inevitably gain. However we must accept that there will be periods when the silver price retraces during its long term uptrend and Hochschild shares will retrace in line with that. Day one of those silver price retracements occurred just after I published that buy tip.
4111 days ago
I spent two years working along Sam Bottell as he worked with minesite.com and oilbarrel.com and he is a good, honest and clever chap. Now that he is starting his career freelance writing as well as an organiser of the UKInvestor Show I have no hesitation in helping him along via this blog as a guest contributor. As such I bring to your attention a share tip from TradingResearch Point on African Hochschild – as it happens I agree with his thesis.
Hochschild Mining (HOC) in my opinion, is the only sensible way to get gearing to silver on the London market and as a silver bull that naturally arouses my interest. On 23rd January the company released its Q4 and calendar 2012 production numbers which came in ahead of expectations. It has a strong balance sheet and a clear pipeline for a marked ramp up in production. As such, at 424.9p valuing the company at £1.3 billion the stock is a buy. Here is why.
Whilst silver may be considered the poor man’s gold, the explosion in paper money as a result of QE has to drive inflation at some point and that should push gold higher dragging silver with it. But there is more. Increasing industrial and medical demand for silver means that, in my view, it will outstrip gold. As such I am a silver bull.
