6 Silver Stocks Analysts Like for 2011

As a pure play, small cap stock, Minefinders(MFN) could greatly benefit from a jump in silver prices, yet fall just as easily.

That said, MineFinders is more of speculative play.

>> 5 Reasons Why Silver Prices Move

ACE Investments' Chang says if silver jumps, Minefinders, currently trading at about $10.80, could hit $13 to $15 almost instantly. "This one could go up like crazy," he said.

"By the same token, I think there is a risk that the stock could be at about $7 to $7.50. So before you know it, it could have 30% downside risk."

For the third-quarter ended Sept. 30, Minefinders reported loss of 7 cents a share; above BMO's estimate of 9 cents loss a share, but below the consensus estimate of loss of 2 cents a share, as sales of gold and silver fell due to ongoing production problems. But the negative production impact was offset by lower-than-expected cash expenses.

BMO analyst Andrew Kaip told clients that the company's weak production had a "slightly" negative impact on his view of the stock and maintained his market perform rating for Minefinders.

Minefinders, precious metals mining and exploration company, currently operates the multi-million ounce Dolores gold and silver mine in northern Mexico. In late 2010, Minefinders received credit approval from The Bank of Nova Scotia for the renewal of its existing US$50 million revolving credit facility.

Minefinders is down about 1.9% since the start of the new year.