That's part of the reason that PAAS was recently upgraded to "buy" from "hold" at Deutsche Bank on expectations its cash flow could rise in 2013. The target was raised from $22 to $26. Shares closed at $22.19 on Thursday, up almost 2.7%. Let's be patient with PAAS and see if the shares might retest the Sept. 26 low of $20.01. If so, that would be an auspicious time to begin building a position. If silver's price keeps rising through the end of the year and into 2013 it wouldn't surprise me to see PAAS surprise on the upside and reach $30.
Keep an Eye on STZ
Now that you're all fired up about silver and Pan American, let me calm you down with a few words about a U.S. company that's into another kind of "hard" asset and reports earnings on Friday. Constellation Brands ( STZ) has added more money-making punch to its stable of brands by its summer acquisition of the remaining 50% of Crown Imports that it didn't already own. It also purchased the Mark West brand of pinot noir wine for around $160 billion. That, added to its numerous other brand names (including Robert Mondavi wines and a long list of other wine labels, and hard-spirits under the Svedka Vodka, Black Velvet Canadian Whisky, and Paul Masson Grande Amber Brandy brands) should help lift its fiscal second-quarter earnings results. Under the Crown Imports subsidiary it peddles some popular beers under the Modelo Brands that comprise Corona Extra, Corona Light, Coronita, Modelo Especial, Pacifico, Negra Modelo, and Victoria brands. After a long, hot thirsty summer, this segment should also report some pleasing news. STZ rallied to a new 52-week high ahead of the earnings report, hitting $34.93 Thursday before closing at $34.72 on heavy volume. This share price lifts the current PE ratio to around 16 and the PEG ratio (five-year expected) to a generous level as well at 1.61. The year-to-date chart below helps illustrate why the shares of STZ have risen along with its rocketing earnings per share growth. STZ data by YCharts