Stocktoberfest 2012: Silver Wheaton Corp (SLW)
Saturday, October 20, 2012 3:44 pm
SILVER! Obviously this company is directly influenced on the price of silver. Thanks to Mark A. for this stock. (Note: Some indicators are not available for this name)
Horowitz & Company’s proprietary Fundamental Scoring System (F|score) takes into consideration many factors related to each company’s financial history and outlook. This system is oriented toward a growth model and therefore will give a higher score to those companies which continually show increasing earnings per share and revenue over time. Over the long-run (and when looking to purchase a security) we prefer companies with a track record of growth and solid fundamentals. In the short-term however, it is price / technicals that pay. When investing, we combine both of these analyses to seek out possible investment opportunities within our universe of stocks.
Horowitz & Company’s proprietary Technical Scoring System (T|score) takes into consideration both individual security technicals as well as the overall market direction when considering whether or not to purchase a company. H&C’s Market Trend Indicator (MTI) is a measure which is designed to evaluate the overall trend in the market. There are four designated levels to assess the trend which include: Strong Downtrend, Downtrend, Rally and Strong Rally. We are currently in an environment where the MTI is in a Downtrend. All of our indicators are showing that the markets are attempting to rally out of a Strong Downtrend or have pulled back from a Rally. Although one should still remain cautious when purchasing individual securities, this may be the time for those with a higher risk tolerance to begin to enter the market or add to those positions with a high level of technical scoring. With that in mind, this stock ranks in the highest percentile of stocks from an individual security technical score. H&C would consider purchasing a small portion of this position even during a Strong Downtrend. This position would be a definite purchase if the market were to be in Downtrend or any kind of Rally.
Below are some of the areas where Silver Wheaton Corp (SLW) excelled or detracted from the value of the technical score:
Stochastics are currently showing some bearish attributes which may mean this stock is slightly overbought in the short run.
In terms of price and volume especially over a short period of time it is important to see if there is any weight behind either a rally or correction. This company has shown to have good price action in terms of volume and therefore has a greater chance to move higher if the overall market and economy are to continue to trend higher. Higher volume with positive price also will provide support levels for this position if it were to decline back to these levels.
On a 12-month rolling period this company has performed very well when comparing against its peers and equities in the S&P 1500. We see this as a positive sign for this company as it shows strength relative to the overall market
H&C currently sees Silver Wheaton Corp (SLW) in a Short Term Uptrend and Long Term Uptrend.