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Endeavor Silver Shows Strength in 2014

By  +Follow February 21, 2014 8:46AM
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Small-Cap Star Endeavor Silver Corp. (EXK) had a rocky 2013, with big gains and losses. On the whole, the company started the year still in a lengthy downtrend that took the stock from its peak in 2011 at more than $12.50 to its 52-week low of $2.88 in early July of last year.

Rebounding Silver Prices, Strong Production Drive Gains

Of course, it’s hard to see this as reflecting too harshly on Endeavor as a company as its stock peaked around the same time silver prices did. Silver came very near touching $50 an ounce in Q2 of 2011, and by early July of last year it was under $20 an ounce.

However, silver is bouncing back and Endeavor with it in 2014. However, other junior silver miners would be hard pressed to match the over 55 percent gain experienced by Endeavor since the beginning of 2014. The company released strong 2014 projections on Jan. 22, with guidance for its three underground mine in Mexico (Guanaceví Mine in Durango State and the Bolañitos and El Cubo Mines in Guanajuato State) apparently impressing investors and traders alike.

"After delivering tremendous production growth in 2013, we plan to hold production relatively steady for 2014, hone the operations and position the Company for a turnaround in metal prices later this year,” said CEO Bradford Cooke at the time. “Our capital budget is significantly reduced this year which will help boost free cash-flow."

"Our focus this year will be on further refining our operating and financial performance through initiatives to improve productivity, reduce operating costs and enhance cash-flow at all three mines, as well as completing the operational turn-around at El Cubo,” he continued. “We have resumed exploration around the mines in order to replace depleted reserves and expand resources, but green-fields exploration will be minimized to drilling our emerging new, high grade discovery at the San Sebastián property."

Strong Technical Signs During Current Uptrend

On the whole, Endeavor’s stock has been sharply positive this year. The stock crossed its 20-day moving simple moving average (SMA) in December, butted up against its 50-day SMA for about a week in early January before breaking through, and crashed through its 200-day SMA by mid-month. The sharp climb that took it through the 200-day SMA hit resistance at around $4.70 a share and retreated once before breaking through. Since then, it’s been climbing and hasn’t looked back, currently hovering near $5.65 a share and a 52-week high.

Fundamental Analysis Also Appears Strong

A look at Endeavor’s fundamentals may indicate why the stock has so much strength. The company managed to dramatically increase revenue from 2011 to 2012 despite crashing silver prices during this period, and its P/E ratio is fairly solid and just under 13.

And if one uses the DuPont Model for analysis, there’s more reason to potentially feel bullish about the stock. While a first look at Endeavor’s ROE shows it coming in well below industry average, a deeper look shows a company trending in the right direction for the right reasons.

Endeavor’s net margins, a key indicator, are significantly better than the industry average. And while the company is well below industry average for asset turnover and equity multiplier, it’s worth noting that, if you have to choose, it’s better to be below average than above for the equity multiplier. A lower equity multiplier means less debt, and while industry average is ideal, less debt is better than more debt in most cases.

What’s more, looking at trends over time, Endeavor’s ROE, net margin, and asset turnover are all improving year-over-year. Net margins improved considerably from 2011 to 2012, as did ROE, and asset turnover appears to be trending closer to industry average.

On the whole, Endeavor appears to be a promising stock that, while dependent on silver prices maintaining some stability, may also be a best-in-breed pick for junior silver miners. There’s clearly some potential here that 2014’s gains aren’t a mirage and this company could keep growing.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for EXK
John C Mueller
24 Oct 14 17:10:23
Looks like it is "go time". http://t.co/axZslwV6oY $EXK http://t.co/Rr2gfE749e
Stock Forums
24 Oct 14 14:11:07
$FREE Financials Click Here: http://t.co/uIc7W0NVss Also See: $IJJP $BIIB $IRBT $EXK ~
Investors Hangout
24 Oct 14 13:30:32
$F E.P.S. Click Here: http://t.co/hULR35D4Ux Also See: $GMCR $TLT $EXK $INTC ~
Investors Hangout
24 Oct 14 13:13:18
$EXK Volume Click Here: http://t.co/hVUYhSfVCa Also See: $NSPH $GILD $AEP $AUY ~
Stock Forums
24 Oct 14 13:13:03
$EXK Company Info Click Here: http://t.co/kbfi3I9hUe Also See: $SLW $VPOR $SPXL $ATPAQ ~
Investors Hangout
24 Oct 14 13:08:51
$EXK Investor Opinions Click Here: http://t.co/799qELRu9E Also See: $RSX $XLU $IBB $HL ~
Investors Hangout
24 Oct 14 11:13:11
$EEM Change Click Here: http://t.co/IkF2B0eRyS Also See: $CSX $MNST $GWPC $EXK ~
US_proptrader
24 Oct 14 11:05:17
$CLF $EPE $ESI $EXK $GDP $MNKD $PENN $SHLD autocharts @ http://t.co/hj7PGeTQk3
Investors Hangout
24 Oct 14 08:07:25
$CSCO Ideas Click Here: http://t.co/G1kNI6ZMTT Also See: $WTCG $IMLE $SSO $EXK ~
HotKeyTrading
24 Oct 14 07:30:11
Gap Downs: $EMKR $CFX $TMK $CLB $AWH $OTEX $AIRM $NMFC $SUSQ $PRLB $CAB $UTEK $BBCN $WG $EXK http://t.co/XQITF0lRKD #markets #analytics
Chasing Stars
24 Oct 14 07:08:59
$CJTF Summary Click Here: http://t.co/TymgmEqTBp Also See: $SIMH $FXE $REVO $EXK ~
Investors Hangout
24 Oct 14 06:58:33
$CLF Last Price Click Here: http://t.co/LZa3LpoNgq Also See: $SBUX $EXK $CNQ.TO $SDRL ~
Investors Hangout
24 Oct 14 03:50:44
$APA Day High Click Here: http://t.co/YMIVxnmVGb Also See: $EEM $RGLS $PLUG $EXK ~
Stock Forums
24 Oct 14 03:07:44
$AEP Bid Click Here: http://t.co/6HV0rQssv4 Also See: $TKMR $ACHN $EXK $CORN ~
Chasing Stars
23 Oct 14 23:38:23
$SEGI Current Price Click Here: http://t.co/MrwRgUCUAX Also See: $DIA $MYEC $SWC $EXK ~
Stock Forums
23 Oct 14 21:51:44
$MINE Filings Click Here: http://t.co/A82re4YYHa Also See: $TZA $GOOGL $RGLS $EXK ~
Investors Hangout
23 Oct 14 19:58:02
$HAS Volume Click Here: http://t.co/vORaoS7ks1 Also See: $CVE $AXP $EXK $CYBR ~
hmelens
23 Oct 14 18:54:06
$EXK nice
Stock Relay
23 Oct 14 16:02:13
wininstocks2014: Stock Charts: EXK 3.84 Stock Charts $EXK Endeavour Silver Corp. http://t.co/t9dDnf9k1g
Bail O'Nomics
23 Oct 14 13:55:04
What The Gold Silver Ratio at 72:1 Looks Like $GLD $SLV $ANV $SLW $JNUG $EXK $ABX $IAG $NUGT $GDX $NEM $AGQ $GG $ZSL http://t.co/bgH3SkaRNq
IH News Desk
23 Oct 14 10:54:50
$EXK Ask Click Here: http://t.co/P699epBLvj Also See: $AEM $HALB $AEM $WNTR ~
Langan Stocks
23 Oct 14 10:50:34
$FB Summary Click Here: http://t.co/ei1saUpB1V Also See: $FB $T $DGAZ $EXK ~
Langan Stocks
23 Oct 14 10:11:17
$EXK Bid Click Here: http://t.co/OYskZeaPV3 Also See: $SSO $MLNX $HEMP $GPRO ~
Anselmo Garza Jr
23 Oct 14 08:31:07
$EXK Triple bottom on the 1Y. Market at all time highs, this could be the time to get in and hold long.
Pete
23 Oct 14 07:35:27
$GLD $EXK $NUGT hammered again.
Stock Relay
23 Oct 14 03:18:53
$FXI Prev Close Click Here: http://t.co/xbnnDuPOIy Also See: $YPF $ISIS $EXK $KORS ~
Stock Relay
23 Oct 14 01:51:20
$EXK Market Cap Click Here: http://t.co/HdhlCUzBpN Also See: $ACT $HNU.TO $MINE $ACHN ~
Stock Relay
23 Oct 14 01:45:51
$EXK Yield Click Here: http://t.co/99SB18ulZc Also See: $NUGT $NKO.TO $HYG $JNUG ~
Stock Relay
23 Oct 14 01:44:48
$EXK Stock Forum Click Here: http://t.co/Vmm10hSmx3 Also See: $XLU $CAT $GPRO $DRYS ~
Stock Relay
23 Oct 14 01:11:33
$EXK Investor Opinions Click Here: http://t.co/1EL2RyhZ0C Also See: $IWM $GOOG $XLV $ACHN ~
Stock Relay
22 Oct 14 23:34:40
$EEM Last Price Click Here: http://t.co/9b2ZpRz5uw Also See: $EXK $FXI $MYEC $EBAY ~
Stock Relay
22 Oct 14 22:27:23
$DUST Change Click Here: http://t.co/RjDEQMoV8O Also See: $HNU.TO $HESG $RGLS $EXK ~
Miguel Madrid
22 Oct 14 21:54:02
@BillTsamis getting in on $exk again? Looks like a reversal again for the next week or 2, PT $5.50
Stock Relay
22 Oct 14 19:38:02
$CNQ.TO Ask Click Here: http://t.co/gr8FZdcHSL Also See: $EXK $ERX $ZAZA $TVIX ~
IH News Desk
22 Oct 14 17:20:33
$HAS Summary Click Here: http://t.co/o1eoSjDte1 Also See: $COHO $EXK $SPXS $PCLN ~
Stock Relay
22 Oct 14 16:02:31
$ATPAQ Open Click Here: http://t.co/s3DQbj4TUp Also See: $XLY $TRN $VPCO $EXK ~
Bail O'Nomics
22 Oct 14 13:56:07
Silver Demand May Reach 1 Billion ounces over next decade -The Silver Institute http://t.co/mQrWpBrcNd $SLV $$SI_F $EXK $AG $AGQ $ZSL $HL
Pete
22 Oct 14 13:03:31
Let's get this gold hammer over with. Decreasing demand. $NUGT $EXK $ deflation.
Investors Hangout
22 Oct 14 11:20:42
danrocks: $HYG Hitting Buzz $XLE $EXK $SWKS $XLK $GDX http://t.co/qtLWDCE1J4
Investors Hangout
22 Oct 14 11:20:42
danrocks: $HYG Hitting Buzz $XLE $EXK $SWKS $XLK $GDX http://t.co/9AV55MfRjy
Pete
22 Oct 14 11:14:42
Gold bugs not reading the script. $EXK $NUGT.
danrocks
22 Oct 14 10:57:14
$HYG Hitting Buzz $XLE $EXK $SWKS $XLK $GDX http://t.co/RZaErZJqO5
Stock Forums
22 Oct 14 10:52:11
$BBBY Last Price Click Here: http://t.co/f3oC9bnktr Also See: $FLPC $QLD $MINE $EXK ~
Rosner Stocks
22 Oct 14 10:34:59
$ARIA Shares Click Here: http://t.co/G24nFDPiMu Also See: $AMBA $MS $EXK $QLD ~
Investors Hangout
22 Oct 14 09:47:39
DennyT: EXK Industry $EXK $HEMP $RGLS $JNUG $UNG Buy or http://t.co/OjbPR4pqs6
Investors Hangout
22 Oct 14 09:47:38
DennyT: EXK Industry $EXK $HEMP $RGLS $JNUG $UNG Buy or http://t.co/aCFo9xWpXX
DennyT
22 Oct 14 09:43:02
EXK Industry $EXK $HEMP $RGLS $JNUG $UNG Buy or Sell?,50 Simple Moving Average,Current Price,Recent Headlines, http://t.co/SGzZE1MrHp
Investors Hangout
22 Oct 14 08:34:24
$AA 52Wk High Click Here: http://t.co/DKb1kduPVN Also See: $SH $TMF $TEO $EXK ~
HotKeyTrading
22 Oct 14 08:30:07
Price Declines: $WAT $PACW $BDBD $LPLA $FTI $EFII $ACC $BGS $MDCO $HAS $EXK $BK $IP $GE $FOXA http://t.co/XQITF0lRKD #investors #stock #mkt
Toyin Arogunmati
22 Oct 14 08:05:07
RT @myrollingstocks: interesting stock $EXK http://t.co/kQwj2SZjpe
				
				
By  +Follow February 21, 2014 8:46AM
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