Heavy Metal
Metals seem to be the talk of the town these days. With Gold touching $600 and Silver at $12, the market is hungry for companies engage in the acquisition, exploration, development, and operation of precious metal properties. While Silver Wheaton (SLW) has had a nice run of late, I still like it. The SEC recently approved a Silver ETF, and the stock has run up in anticipation of being part of this ETF. Additionally, Silver is in high demand and there is talk of it rising to the mid-teens. This bodes well for SLW and I recommend a buy at a pull back to $10.50
Besides Silver, other metals like Zinc, Nickel and Gold have also been on fire. Just look at Allegeny Technologies (ATI), which engages in the production and sale of a range of specialty metals and energy related metal producers like Tenaris (TS). In fact, I highly recommend a buy on both these on a 10% pull back from these levels.
- Faisal Laljee
