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Big Profits In Junior Silver Miners


The Dynamic Wealth Report
May 26, 2011

by Eric Salazar, Editor

A few weeks ago, I decided to buy some Powerball tickets.  My goal was to retire by the end of the week.  While driving home, I kept dreaming of the beaches in Jamaica and the super model girlfriend I was going to meet.

Then reality set in.

Just like many other people, I didn’t win.  So the tickets ended up in the garbage can. 

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Every day, millions of lottery tickets end up worthless.  Leaving hordes of people frustrated and disappointed.  It’s sad to see so many people throwing their money away.

Wouldn’t it be nice to cash in winning lottery tickets for a change?

If you said yes, you’re in luck.  There is a place where you can buy winning lottery tickets.  And, I’m going to show you how to get them in a moment.

Now, you can’t find these winners at your local gas station.  Nope, you can only find them in one place… the stock market.

So, what are these stock market lottery tickets?

I’m talking about junior silver mining stocks.  These are startup companies who are literally panning for silver.

What makes junior silver miners so great?

Many of them are trading for less than a cup of coffee.  In other words, these stocks offer an opportunity to turn a small upfront investment into a huge pile of cash.

Here’s a perfect example…

Great Panther Silver (GPL) was trading for just $0.50 a share in August of 2009.

Then, all of a sudden things changed.

In 2010, the company had a record setting year producing over two million ounces of silver.  By doing so, the company earned over $5 million in net income.

GPL Chart

As a result, the stock soared from $0.50 to over $4.50 per share.  That’s a whopping 800% gain in just 18 months.  By investing $1,000 into this one stock, you could have raked in a tidy $8,000 profit in short order.

Now you see why I like junior silver miners so much!

Are you ready to find the next GPL?  If so, I’ve got good news for you.  I have a simple three step process for discovering junior silver miners with big upside potential.

The first step is to find out where the big silver miners are currently drilling.

You can do this easily by going to www.SilverStrategies.com.  From the home page, click on a few of the featured companies.  Look for silver stocks trading on the NYSE, AMEX, or NASDAQ.  Some of the stocks I’ve looked at before include Silver Standard (SSRI), Pan American Silver (PAAS), and Silver Wheaton (SLW).

Once you find a handful you like, write down their names and go visit their websites.

Pay extra attention to the Operations section… It shows where the company’s been drilling.  Make some notes on where their projects are located.  And keep in mind, the more companies you research, the more drilling projects you can use for reference.

The next step is to find small silver mining companies with the best chance of hitting pay dirt.  Look for miners trading on major exchanges who can play follow the leader.  You can do this by going back to the Silver Strategies website.

Now remember, you’re looking for stocks trading at $3.00 per share or less.  Jot down the names of each one and head over to their corporate website.

You’re now in the place where the “road to riches” begins!

See if they have mining projects in the United States, Canada, or South America.  You see, all of these countries encourage mining activity.  And, government support is critical to a junior miner’s success.

Once you know which country the miners are operating in, you should find out where they’re drilling.  Compare these locations to where the larger companies in the mining industry have drilled. Chances are if something’s been found once, it’ll happen again.

The last step is to evaluate each junior miner’s fundamentals.

The most important criterion is the company’s financial position.  Take a look at the most recent quarterly and annual reports.  Make sure the company has plenty of cash to fund their drilling operation.  If they don’t, the company won’t be able to find silver, let alone get it out of the ground.

Another important fundamental criterion is a solid management team.

Not everyone is qualified to run a junior mining company.  You want to see people in charge with experience running small mining companies.  It’s much different running a company just getting off the ground versus an established one.

That’s all there is to it.  Find the most fundamentally sound junior miners with the greatest potential of hitting the motherlode.

At this point, you’re a full-fledged “research” guru.  You know exactly how to uncover the next big silver miners.  But you’re not done yet…

Now, go back and find several more junior miners with great upside potential.

Find five to ten companies you like… do the research… and buy the best ones!  By following these steps, you’ll build your own portfolio of potentially winning lottery tickets.  And, when one or more of these companies makes a discovery, you’ll see their share price explode!

Before long, you’ll be dipping your toes in the water off Jamaica!

ETF Action

One of the top winners this week in the ETF space is Pro Shares Ultra Silver ETF (AGQ).  The double leveraged silver ETF is down nearly 5% today, but up over 10% over the past week.  AGQ is soaring as silver prices recover from the sharp correction earlier this month.

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Issue Date:
 Thursday, May 26, 2011


Notable Highs and Lows

•  Sprint Nextel (S) hit a 52-week high of just over $5.75.  The wireless phone provider is climbing to new highs on rising subscriber numbers.  Their market cap is now over $17 billion.

•  El Paso Corp (EP) hit a new 52-week high of over $20.50.  The natural gas company announced plans to split into two separate companies later this year.  They have a market cap of just over $16 billion.

•  Cisco Systems (CSCO) hit a 52-week low of just under $16.25.  The networking and communications company is projecting future revenues to be sluggish.  Their market cap is just over $89 billion.


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