New York, New York (PressExposure) March 12, 2012 -- Sasha Cekerevac, co-editor for Penny Stock Detectives, believes that silver is confirming a break from its downtrend, which hit bottom in late December of 2011. In a recent Penny Stock Detectives article, Cekerevac argues that, as silver begins its new bull run upwards, the silver penny stocks will rise to a significant degree, because, as mining costs remain the same, every dollar rise in silver goes straight to the bottom line of these silver penny stocks.
"Some silver junior mining companies are early exploration companies, while others are late-stage silver producers," explains Cekerevac. "An investor needs to understand their own risk criteria and how the penny stocks fit into that portfolio. Once that is accounted for, there are numerous silver junior mining companies that have very interesting business models and great future potential."
In his article, Cekerevac urges investors to investigate Great Panther Silver. The company is currently experiencing a very interesting technical breakout, after bouncing off the year low in December 2011. Great Panther Silver made a higher low in February and has now crossed above the 200-day moving average. This is a very bullish formation that, according to Cekerevac, an investor should keep an eye out for in all silver junior mining companies.
"While I'm not recommending buying the stock today," noted Cekerevac, "the chart pattern in this silver company is indicative that there are large funds accumulating shares."
Another interesting silver penny stock Cekerevac shows interest in is Hecla Mining Company. Cekerevac notices that this silver miner trades at a lower price-to-earnings ratio than Great Panther Silver and is valued at 1.35 times book value. One headwind for Hecla, Cekerevac pointed out, is that there is a lawsuit pending against the company alleging that the firm misled shareholders and artificially inflated prices, which the firm denies. This might be an opportunity, if the firm wins, to buy a silver miner below its fair value due to this dark cloud.
"Penny stocks can have higher rewards, but also some higher risks," Cekerevac warned. "Each of these silver junior mining companies has positives and some negatives. An investor must weigh each risk against their own portfolio and understand how precious metals penny stocks fit in their risk metrics."
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
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