Silver Keeps on Going Up

Today Silvercorp had yet another day up. This move is becoming quite odd to me.

I know this is a greatly undervalued stock but it has had so many days in a row now without even pausing to take a breather.

I was chatting with qbit today and he mentioned that Silvercorp is pretty tightly held. I think this is turning out to be very true.

It trades as if 80% of the float is locked away at the back of some people's portfolios. And they will only sell it in a couple years after 100's% return.

Although I have a feeling that much of today's trading was chasers and momentum players. As soon as we get a day where the price goes down, many traders will simply dump their shares. (I can't blame them, on Monday, Silvercorp opened at $9.45. Today it closed at $13.49. That's a 43% gain...in only 5 days!!!!) However, I'm in it for the long run.

You should not be surprised when this happens (pullback). But don't panic with them. We've gone up almost too much too fast. So when this pullback happens, feel free to by some more shares.

I know I've been predicting this pullback for a week or so for Silvercorp but it still hasn't happened. Oh well, I own shares and if you do, we're not complaining!!

Remember, my current price target for Silvercorp is $17 by the end of the year. However, because the market is finally just beginning to discover thier potential, I will probably raise my target price in the coming weeks (if not sooner).

Note: The little localstocks blog here will be replaced very soon by the new web site that I have been talking about. It will be called Stock Bullz. The design is completed but there are still little tweaks and modifications that I have to do to it before I can begin the transition from this to Stock Bullz.

But let me assure you that this new site will be amazing! It takes my unique stock commentary and research and complements it with a truly wonderful and very powerful site layout. Hopefully the transition will be smooth but I know you'll love it!