New High Close For High-Ranked Mining - Gold/Silver/Gems Leader
Monday, October 18, 2010 - CANSLIM.net

There are a few high-ranked leaders hailing from the Mining - Gold/Silver/Gems industry group which are currently included on the Featured Stocks page based on fundamental and technical strength.  Current leadership in the group (L criteria) is helping many firms in the group show strength. They are ideal candidates for investors' watch lists as the broader market continues its rally.  If they produce sound new bases and bullish breakouts confirming that they are attracting great institutional (I criteria) demand, some of these leaders are capable of substantial sustained advances.  Meanwhile, patience and good discipline are critical.

Silver Wheaton Corp (SLW +$0.20 or +0.72% to $27.90) posted a small gain today with near average volume for a new all-time high close. Since it was last shown in this FSU section on 8/25/10 with an annotated graph under the headline "Another High-Ranked Mining Firm Perched Near Highs" it has steadily risen +30%. This Canada-based firm in the Mining - Gold/Silver/Gems industry had a downward turn in FY '08 earnings (A criteria has been noted as a concern, see red circle). Its 4 latest quarterly comparisons showed solid sales and earnings increases (good C criteria) after 4 prior reports with negative comparisons versus the year ago period. Its Up/Down Volume Ratio of 1.9 indicates that it has recently been under accumulation and on the rise due to institutional (I criteria) buying demand.  It is extended from an ideal buy point, so patient investors may be wise to wait until a secondary buy point develops before making initial or add-on buying efforts.


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