Aitakahashi you are a star for being captain of this ship & bringing this stock to our attention. What a run!!

My compliments

Joltin

thanks joltin, but you ain't seen nuthin' yet! i don't see anything to stop this stock until it reaches 43, at which point the notes can be converted. then i think it will take some time to digest those before it moves still higher.

i don't normally post about sso outside this forum, but i did so when the market cap was driven below $400 million because the stock was combination of high reward/low risk that you're never supposed to see in real life. by any metric, this company was incredibly undervalued. the president was buying the stock in the high teens, and then it fell another 50%. the only way sso should be trading in single digits is if the earth had been hit by a comet. then the stock fell to 6, which i figured meant the market was expecting the comet to land directly on top of the pirquitas mine.

a couple of months ago, when mag silver became the target of a hostile takeover, its retail shareholders were complaining that the offer was inadequate because mag is backed by 2 ounces of silver per share. and they're right - but sso had a similar price and similar float back then, and its shares are backed by 27 ounces of silver. so i was buying this and other silver stocks in oct/nov, and i think people who are willing to buy at bleak times like those tend to do better in the market than anyone else.

what sets this company apart is that it has the goods. quartermain decided to buy silver properties in the 90's when no one else wanted them, and he locked up the best assets in the americas, usually for less than 5 cents per resource ounce. when many other startup companies moved into the silver space and drove up the price of silver properties, sso turned to exploration, which it is very good at. the pitarrilla project in mexico is well over 600 million ounces, and still growing. this was the result of grass roots exploration, as was the 4 million ounces of gold they found at snowfield.

the company has 1.6 billion ounces of silver, located in politically stable countries, and if snowfield were an exploration company, it would have a market cap of $100 million all by itself. basically, with its 16 projects, sso is like ten exploration companies put together, only with all the cash it needs to begin production, so it was not affected by the credit crunch. but its share price was driven down more than 80% anyway, creating this great buying opportunity for us.

as an example, the diablillos project is expected to produce 7 million ounce of silver and 70,000 ounces of gold per year. this would be the flagship project for any other explorer, but the company can't start on it yet, because the three projects ahead of it are even better. pirquitas should produce 10 million ounces of silver at no cost this year, making sso a mid-tier producer based on just one project.

on top of that, there is still a 4 million share short position, which is not related to the convertible notes, and those will eventually need to be bought back. the shorts must be expecting the company to stumble on bringing pirquitas into production, but it is very late in the day for that. the mine commissioning process is well underway, and first production is imminent. so what we have here is the chance to buy a mid-tier producer that is being priced like an exploration company at 70 cents per resource ounce.

in short, this company and this stock have a long, long way to go.