Today’s Stock: Silver Mountain Resources Inc. (AGMR)Today’s Stock: Silver Mountain Resources Inc. (AGMR)
Silver Mountain Resources Inc. engages in the acquisition, exploration, and development of precious metal resource properties in Peru. The company primarily explores for silver and base metals. Its flagship project is the Reliquias covering an area of 20,000 hectares located in the Huancavelica, Peru.
My Thoughts 💭My Thoughts 💭
With silver being all the rage now it’s only right to take a look at a silver mining company to determine if it is a good idea to invest in such a company.
I learned about this company watching Mark Moss videos on YouTube. He was bullish on silver and mentioned this company as being a possible investment. I threw it on a watch list but never purchased shares. With this silver run it is quite possible Mark Moss was correct.
At 3.2k sats per share ($90,221), and no dividend investors must believe this company can still grow or start paying a dividend up justify owning this stock.
At a -10 PE investors are paying $10 to access $1 of losses. As PE is a lagging metric of a company’s value it is quite possible this can flip positive with the current silver bull run.
PE:PE:
Expected Growth:Expected Growth:
Revenues and expenses:Revenues and expenses:
Balance Sheet:Balance Sheet:
Dividend:Dividend:
No DividendNo Dividend
Bitcoin per share:Bitcoin per share:
NoneNone
Ownership breakdown :Ownership breakdown :
Leadership:Leadership:
Silver having a price explosion was very impactful for this company. Over the last year it is up over 400%+. The question becomes is this the top? Died the stock have more room to run or will it trade like a memecoin and crash as soon as the silver market corrects.
The company is expected to grow at a 60%+ clip, but the company is not profitable. Unless the data is wrong this company has no revenues! Just bleeding cash to fund operations which makes sense due to mining being a very capital intensive industry. The balance sheet is pristine with zero debt but how long will that last?
Retail owns 84% of the float! Which could be a bullish sign of Wall Street starts to place a bid on this stock. But bears would says retail has weak hands any crack in price may send this stock lower in a heartbeat.
I don’t think this stock is worth trading sats for shares. The fundamentals are weak and it doesn’t pay a dividend. Bitcoin is a better money than silver and has more room to grow. Once the silver price corrects I expect this stock to drop like a rock. Investors are buying into the story which could be dangerous if one hope to make this a long term investment.
Taking this one off the watchlist. Thanks Mark Moss but I’ll stick to bitcoin and my water stocks!
Mining stocks will rally hard while the silver price is booming but once it cools off these will likely get smacked. You have to believe the silver rally is just getting started to want to buy into miners. Best time to buy them is before the rally begins because they usually rally harder.
Indeed! 400% gain in over a year for this Canadian company
The first stock I ever bought was Silver Wheaton. Now called Wheaton Precious Metals Corp. I read about them in moneysense magazine so I opened a brokerage account and bought $500 worth of the stock. 6 months later my $500 was down to $350, so I sold and withdrew my money. Haha
Hahaha I wonder if they pumped during this precious metals bull run
The stock has gone up over 10x since I bought it over 20 years ago. Haha
Good lesson though.
Wow!! Yeah that is what I am hoping to do buy and hold 20+ years
That's the mindset you have to have. If you believe in a stock and think you are getting a fair value for it don't sell it. It's ok to trim and add around the edges if you feel the need to try and time the market but I wouldn't do that with more than 20% of a position. Just hold it. If your thesis changes then sell it and move on to something else.