Hecla Mining Company sold Silver Wheaton Corporation bought

Print This Post | Topic: Silver Mining Companies — August 10th, 2010

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As we have discussed a number of times in such posts as Are Silver Stocks worth the effort? today we commenced a revamp of our portfolio of silver stocks. We sold 90% of our stake in Hecla Mining Company (HL) for an average price of $5.08 and redeployed the funds by acquiring more of Silver Wheaton Corporation (SLW) stock for an average price of $19.76.

We have waited patiently for some time now for Hecla to improve its performance but as the charts showed on the above mentioned article this has not happened to our liking and our patience has come to an end. On the other hand Silver Wheaton appears to us to be the best vehicle for maximizing our profits in this silver bull market so we had no hesitation in transferring the funds from one company to the other. You could argue that we should have waited for a ‘dip’ in the price of Silver Wheaton’s stock or for a better chart set-up, however, we are approaching the seasonally strong time of the year for precious metals and so we wanted to re-position ourselves accordingly.

Tomorrow we intend to continue with our strategy of reducing our exposure to those stocks that we view as not performing adequately enough and again we will probably ‘park’ the funds in Silver Wheaton Corporation. However there are a number of options trades coming onto our radar so some of the cash may be held until such opportunities ripen before we pounce.

We would like to stress the importance of reviewing your portfolio and implementing the fine tuning that you believe is best for you. We are all different with different objectives and differing aversions to risk etc, so do the work and satisfy yourself that you are ready for what the market will throw at us.