Canadian Mining Stocks

Silver metal corp, SVM has taken quite a hit over the last two years. Reports from websites such as Seeking Alpha have not always been kind to the company with accusations of false reporting of earnings and cash flows.

While it's true that silver as well as other precious metal have taken a beating since 2011, the long term fundamentals still exist that will likely propel prices higher in the near future. There are no indications of a slowdown of quantitative easing from the Federal Reserve until 2014. (Though, I am quite certain there will not be much of a reduction of asset purchases, if any at all) as well as the continuing doubt of Europe's ability to pull itself towards financial stability.  Thus making precious metal miners a risky but possibly lucrative bet.

It's also worth noting that there are many shorters out there whom seem to prey on investor doubts and hesitations of companies that have a lot of their operations in China. Please carefully consider this when deciding what stocks to buy and sell.

SVM currently trades at $2.74 has and has a Beta of 1.42.

With an average  price-target of $4.15. Price Target Source: http://finance.yahoo.com/q/ao?s=SVM+Analyst+Opinion                        

If the analysts are correct, you're looking at a 51.46% growth in the stock.

.0276 + 1.42(.0746-.0276): 9.434%

The CAPM equations suggests that the stock is a buy. Though, I would keep an eye on the news that comes out of their upcoming conference call. (Nov 15, 2013, Q2 2014 Silvercorp Metals Inc Earnings Release-Tentative).

The 7.46% comes from the average 10 year return for the S&P 500.
 https://personal.vanguard.com/us/funds/tools/benchmarkreturns

The 2.76%  comes from the ending of today's (11/12/2013) 10-year treasury yield.
http://www.marketwatch.com/investing/bond/10_year




Silvercorp Metals Inc. (Silvercorp) is engaged in the acquisition, exploration, development and mining of silver-related mineral properties in China and Canada. Silvercorp is the primary silver producer in China through the operation of the four silver-lead-zinc mines at the Ying Mining District in the Henan Province of China. The Company has commenced production at its second production foothold in China, the BYP gold-lead-zinc project in Hunan Province and is building the GC silver-lead-zinc project in Guangdong Province as its third production base in China. During the fiscal year ended March 31, 2012 (fiscal 2012), Silvercorp acquired the XBG and XHP silver-gold-zinc projects near the Ying Mining District in Henan Province. On December 2, 2011, the Company, through its 77.5% owned subsidiary Henan Found Mining Co. Ltd., acquired 100% interest in Songxian Gold Mining Co. Ltd. In April 2013, New Pacific Metals Corp. acquired an 80% interest in Fortress Mining Inc. from the Company.