This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top 10 Commodity Stocks of 2010

3. Silver Wheaton

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

YTD Returns: 152%

Silver Wheaton (SLW - Get Report) is a leading silver streaming company.

About 70% of silver production comes as a by-product from base metal and gold mines. Silver stream agreements give the company the right to purchase a percentage of future by-product silver production from a mine that it does not own or operate in exchange for upfront payment. The company does not incur any capex or exploration costs.

"I think if silver prices stay strong our production trends upwards significantly over the next three years. This year we'll have about 23 million ounces of production. If we make no more acquisitions our production is at 40 million ounces a year in three years time. So if silver prices stay where they are I think you'll see a general trend upwards in our earnings and cash flows," CEO Peter Barnes told TheStreet.

The stock has been the biggest beneficiary of the rally in silver prices. Silver recently touched a 30-year high, sparking fresh interest in the precious metal. Bulls have been touting silver's industrial applications in addition to its value as a precious metal.

Silver Wheaton reported record earnings of $69.2 million, or 20 cents per share, in the third quarter, double the $33.6 million, or 11 cents a share, it reported a year earlier.

BMO recently upgraded the stock to an outperform from market perform and raised the price target to $46 from $40.

Barnes expects Silver Wheaton to raise production by almost 20% next year, and sales could get a further lift from higher prices. "Silver could go as high as $50 an ounce over the next three-four years ... and $30 easily in the next few months," Mr. Barnes, told Reuters recently.
9 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
EC $10.66 -5.58%
KRO $9.58 -2.64%
NGD $2.03 -7.73%
NG $2.93 -3.93%
SLW $12.69 -2.98%

Markets

Chart of I:DJI
DOW 17,598.20 -91.66 -0.52%
S&P 500 2,098.04 -5.80 -0.28%
NASDAQ 5,115.3820 -12.8990 -0.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs