Monday, November 5, 2007

Brief Foray Into Negativity

While I don't normally revel in the pain of other's trading losses, the blow to my awful day has been cushioned by seeing SWC down 15% or so. Sorry, JJ. Not really.

I guess it's a buy here?


TraderCaddy said...

A company like SWC should be hitting new highs, at least based on its mining of platinum and palladium. There isn't alot of competition out there and the metals are doing well pricewise. I know the Russians have a good time manipulating the price via their stockpiles however I also know a couple of auto companies are working on substitutions for catalytic converters.
I guess SWC just plain sucks as does PAL.

JJ2000426 said...

No, there is NONE competition in the USA, or in the whole of North and South America. There is no competition in Asia. SWC is the largest PGM metal producer outside Russia and South Africa.

There is no substitute for auto companies. They have had decades to develope a substitution if it were possible. Each catalysts converter costs about 1/10 of an ounce of PGM. That's $37 worth of palladium per vehicle. Why would auto makers bother to send money to find a substitute?

Biggest thing is fuel cell development. Check it out on Any fuel cell applications will use PGM metals.

I am still way much better off from the low of SWC at $8.00. Nothing goes up straight. PGM metal prices are still making new highs so give a day or two SWC should resume the rally soon enough.

But wait until SWC reaches $20 a share if you are not so sure. Wait till SWC reaches $200 would be better. Because I will need to find a buyer by that time.

Russian stockpile will run out. It's physics law. you keep taking away from a pile, it eventually run out.

TraderCaddy said...

jj-You cite the law of physics. How about the law of logic? Since you agree that the metals are at record highs and yet the price of SWC is near a low then logic dictates that their is a problem with this company. SWC was in the 40s in 2000 when the PGM group was lower in value.
Come out behind the trees and see the sunlight. Go with an AEM,ABX, or GG if you are a metals bug. You know that if you did when you first started buying SWC that you would be much wealthier.
Face reality (or else you are putting us all on).