Palladium Stocks Such as Stillwater Mining Could Be Great Buys; Special Report by Leading Financial Web Site Penny Stock Detective
In a recent Penny Stock Detectives article, editor Sasha Cekerevac argues that with the recent volatility in the gold and silver markets.
(prHWY.com) August 10, 2012 - New York, NY -- In a recent Penny Stock Detectives article, editor Sasha Cekerevac argues that with the recent volatility in the gold and silver markets, having some portion of a portfolio in palladium might make long-term sense, as it is an industrial metal as well as a store of value. Cekerevac notes that taking a long-term view, once economies stabilize, we could currently be at the bottom of the cycle, which means that palladium and junior mining companies might also be at a cycle low, .
"With the automotive and electronics industries being the biggest users of this commodity, those interested in palladium investing would do well to monitor these sectors," comments Cekerevac.
While automobile sales have done reasonably well, with the worldwide economic slowdown still occurring, there could be additional downside pressure, says Cekerevac. However, he continues, one should be aware that any positive economic signs would then translate into a bullish push into palladium and, ultimately, junior mining companies.
"Don't forget, the world continues to grow in terms of population and the number of people moving up into the middle classes. This means increased consumption for both automobiles and electronics, driving demand and interest in palladium over the next several decades," believes Cekerevac.
According to the Penny Stock Detectives editor, there currently is a lack of junior mining companies specifically involved in palladium investing, as many extract multiple precious metals. One of the more interesting junior mining companies for those interested in palladium investing is Stillwater Mining, notes Cekerevac, a company that extracts, processes, refines, and smelts a variety of precious metals, including palladium and platinum.
Looking at the company's earnings results for the quarter ended March 31, 2012, Cekerevac notes that while the company did increase revenue to $203 million from $170 million in the same period in 2011, the net income was only $2.4 million for the quarter as compared to $36.2 million in the same period of 2011. However, the lower earnings figures are related to exploration expenses ($10.1 million), a write-off of $2.8 million, and a currency hit of $2.9 million, says Cekerevac. Also, Stillwater has recently been attempting to form a bottom following the fourth-quarter earnings release in the spring, he mentions.
In Cekerevac's opinion, junior mining companies are inherently risky, but also provide a high level of potential reward. Junior mining companies are closely tied to the spot price of the commodity, he notes, reasoning that as palladium investing goes on an upswing, so do the interconnected junior mining companies.
"With the global economy quite slow," Cekerevac concludes, "what those individuals interested in palladium need to see is a glimmer of hope....One additional positive would be further monetary stimulus by the world's central bankers. In either situation, palladium and the junior mining companies associated with this industry should move up proportionately."
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