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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
Pete
20 Aug 14 13:21:41
$EXK going lower.
Business Headlines
20 Aug 14 11:18:58
$EXK: News Recap – CYS Investments Inc (CYS), Endeavour Silver Corp (EXK ... http://t.co/f0tsEKsQHp http://t.co/NnrV6WugxU
Camilo
20 Aug 14 10:20:27
$EXK red/green
Pete
20 Aug 14 08:45:06
EUR 1.325 close. $EXK more down side. Holding off the trigger, still.
Louis Cammarosano
20 Aug 14 05:44:01
RT @Bailonomics: Amount Gold/Silver Required To Cover Comex shorts $IAG $IAU $ABX $EGO $PHYS $SLV $SLW $GPL $SI_F $AGQ $EXK $AG $sil http:/…
Bail O'Nomics
20 Aug 14 05:25:26
Amount Gold/Silver Required To Cover Comex shorts $IAG $IAU $ABX $EGO $PHYS $SLV $SLW $GPL $SI_F $AGQ $EXK $AG $sil http://t.co/JvsWZjzEEb
Bail O'Nomics
20 Aug 14 03:59:02
Part 2 Gold/Silver Manipulation $XAUSD $ANV $GG $GOLD $ABX $ZSL $AGQ $SI_F $GC_F $NEM $SAND $NG $IAG $IAU $EXK $AG http://t.co/7NPOsSj5cD
Smaulgld
19 Aug 14 18:50:42
RT @Bailonomics: How To Buy Silver $SIVR $PSLV $USLV $SLW $ZSL SI_F $EXK $AGQ $HL $CEF $AG http://t.co/YwfV1nMUzG
HereTizz
19 Aug 14 16:27:08
RT @Bailonomics: How To Buy Silver $SIVR $PSLV $USLV $SLW $ZSL SI_F $EXK $AGQ $HL $CEF $AG http://t.co/YwfV1nMUzG
Bail O'Nomics
19 Aug 14 16:23:11
How To Buy Silver $SIVR $PSLV $USLV $SLW $ZSL SI_F $EXK $AGQ $HL $CEF $AG http://t.co/YwfV1nMUzG
Business News
19 Aug 14 11:18:59
$EXK: First Majestic Silver (AG) Crumbles: Stock Falls by 6.3% http://t.co/p7WHkp4wNV http://t.co/bZ1C3ZSrol
TradingMyway
19 Aug 14 10:43:56
$EXK,$PAAS long ..looks like $SLV reversal started
Investors Hangout
19 Aug 14 10:22:16
leahanne: $EXK Endeavour Silver Corp (EXK) 5.62 -0.12 http://t.co/yrP9nAVeOi
Investors Hangout
19 Aug 14 10:21:54
leahanne: $EXK Endeavour Silver Corp (EXK) 5.62 -0.12 http://t.co/sYF4s1neY0
Investors Hangout
19 Aug 14 10:14:07
danrocks: $SCTY Hitting Buzz $XLU $EXK $ITB $Z $UVXY http://t.co/f7fHOGNbdv
Investors Hangout
19 Aug 14 10:13:50
danrocks: $SCTY Hitting Buzz $XLU $EXK $ITB $Z $UVXY http://t.co/fIya9Tk3kH
leahanne
19 Aug 14 09:55:26
$EXK Endeavour Silver Corp (EXK) 5.62 -0.12 (-2.09%) $SVXY $VVUS $QLD http://t.co/lG6lccsXDV
danrocks
19 Aug 14 09:50:59
$SCTY Hitting Buzz $XLU $EXK $ITB $Z $UVXY http://t.co/Uw3GtcQPHb
Financial Updates
19 Aug 14 08:18:52
$EXK: News Review: Endeavour Silver Corp. (EXK), Pacific Ethanol Inc (PEIX ... http://t.co/WMC1S9Gdw4 http://t.co/Mdx4y2l9l6
leahanne
19 Aug 14 08:17:22
$PBR Petroleo Brasileiro S.A.- Petrobras (PBR) 17.18 +0.32 (+1.90%) $EXK $APA $JPM http://t.co/g0nO4zwyNX
Investors Hangout
19 Aug 14 08:13:20
leahanne: $EXK Endeavour Silver Corp (EXK) 5.68 -0.06 http://t.co/FIWHNACHlM
Investors Hangout
19 Aug 14 08:13:19
leahanne: $EXK Endeavour Silver Corp (EXK) 5.68 -0.06 http://t.co/OoFZpd55zL
leahanne
19 Aug 14 08:04:35
$EXK Endeavour Silver Corp (EXK) 5.68 -0.06 (-1.05%) $UA $ABX $ERX http://t.co/wuE1wfn853
Pete
19 Aug 14 07:58:38
$EXK no need to buy yet as stated. Gold has even more down side. $UVXY likes to split to $90's.
Investors Hangout
19 Aug 14 07:36:26
DennyT: DAL Basic Tech. Analysis $DAL $GDX $EXK $TKM.TO http://t.co/OYBxCTvdrX
Investors Hangout
19 Aug 14 07:36:18
DennyT: DAL Basic Tech. Analysis $DAL $GDX $EXK $TKM.TO http://t.co/B9Sp7A2ghj
Market News
18 Aug 14 14:18:56
$EXK: NYSE stocks posting largest percentage decreases http://t.co/gZHgrhbwN9 http://t.co/x6kOJB9SYE
Business News Watch
18 Aug 14 13:18:52
$EXK: Stocks in the Spotlight - Endeavour Silver Corp(NYSE:EXK), CONSOL Energy ... http://t.co/QC0UNH3uNz http://t.co/YKZz12ztKH
Camilo
18 Aug 14 12:48:26
$EXK still strong holding from 5.70
lookn4wins
18 Aug 14 10:06:36
$IYT 200 Simple Moving Average $IYT Most recent stock chart and technical analysis. $CAT $WLT $EXK $AG $MCD $X http://t.co/WLdUNuVXNc
iHangout
18 Aug 14 09:38:07
http://t.co/vVojvVJX1T jim50: The Launch Pad: $EXK Low Date=Aug-18-2014 Open=5.66 High=5.75 http://t.co/3MjzZbFtZC
jim50
18 Aug 14 09:32:35
$EXK Low Date=Aug-18-2014 Open=5.66 High=5.75 Low=5.62 Close=5.65 Volume=310082 http://t.co/X1dfApZ1eZ
lookn4wins
18 Aug 14 09:29:21
$XUII TA $XUII Most recent stock chart and technical analysis. $BIIB $TRN $EXK $EPI $IWM $CORN http://stockcha http://t.co/4R3LjqpXGU
Companies in News
18 Aug 14 09:18:56
$EXK: Top 3 Silver Miners For $30 Silver http://t.co/9X5qbiSWJa http://t.co/looDXbSkQw
lookn4wins
18 Aug 14 09:12:13
$ERF Volume $ERF Most recent stock chart and technical analysis. $SLB $EXK $BRCM $APA $TWTR $TRN http://stockc http://t.co/ScW8kgEYWv
iHangout
18 Aug 14 08:28:25
http://t.co/X6MMwAJjms danrocks: The Hunt for the Next 10 Bagger: $EXK Hitting Buzz $SBUX $SSO $XLU $EXK $ARIA http://t.co/Rx8y3oI9ye
Investors Hangout
18 Aug 14 08:19:48
danrocks: $EXK Hitting Buzz $SBUX $SSO $XLU $EXK $ARIA http://t.co/OFAvMEyyAo
Investors Hangout
18 Aug 14 08:19:28
danrocks: $EXK Hitting Buzz $SBUX $SSO $XLU $EXK $ARIA http://t.co/l2kCzIVww9
danrocks
18 Aug 14 08:18:26
$EXK Hitting Buzz $SBUX $SSO $XLU $EXK $ARIA http://t.co/ttIvUnKFmD
Investors Hangout
18 Aug 14 07:13:55
danrocks: $KGC Alert $NFLX $TRN $EXK $DDD $JKS http://t.co/0Xv80arLI7
Investors Hangout
18 Aug 14 07:13:55
danrocks: $KGC Alert $NFLX $TRN $EXK $DDD $JKS http://t.co/48vjR59jtX
danrocks
18 Aug 14 06:51:37
$KGC Alert $NFLX $TRN $EXK $DDD $JKS http://t.co/Q0uWIprTu9
Business Updates
18 Aug 14 03:18:51
$EXK: Endeavour Silver Corp. (EXK) in Focus: Stock Moves 6.9% Higher http://t.co/KQRK3Wq0R7 http://t.co/SAN9FUNt7B
iHangout
18 Aug 14 03:04:52
http://t.co/X6MMwAJjms Stock_Tracker: Stock DD Board: Endeavour Silver Corp (EXK) 5.71 $EXK Shares of http://t.co/N5JkUBVA5f
chartguy89
17 Aug 14 23:01:48
EXK 5.71 Stock Charts $EXK Endeavour Silver Corp. (NYSE) Last Updated: 08/18/2014 01:01:49 EXK Stock Chart - 1 http://t.co/zGYpyRSGcg
Steph Seguin
17 Aug 14 14:57:11
Watching tomorrow $SLB $CVX $CNQ $EDR $GLUU $BK $EXK $HP $OWW $PPP $PTEN $STT $TRW $YPF $VNTV $BKD
iHangout
16 Aug 14 05:09:26
http://t.co/X6MMwAJjms chartguy89: Stock Charts: EXK 5.71 Stock Charts $EXK Endeavour Silver Corp. http://t.co/8Z0vbdrQqx
Bail O'Nomics
15 Aug 14 13:05:55
Why did the U.S. Government Destroy 270 Million Morgan #Silver Dollars in 1918? $SLV $SLW $SI_F $ZSL $AGQ $HL $EXK http://t.co/boT3ncFrfW
Stock Updates
15 Aug 14 11:19:16
$EXK: Update: Endeavour Silver's Earnings (EXK) http://t.co/CSmhacosmd http://t.co/Y1gbQoRPB6
Investors Hangout
15 Aug 14 11:04:49
chartguy89: CEF Stock Chart $CEF $DIS $EXK $NBG http://t.co/vchBYt28J6
				
				
By  +Follow February 21, 2014 8:46AM
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