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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
Investors Hangout
21 Oct 14 17:58:08
$NKE Message Board Posts Click Here: http://t.co/yl7jPQJqrb Also See: $F $AMGN $EXK $HD ~
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$MO Bid Size Click Here: http://t.co/EMB3Cm6iHJ Also See: $EXK $ELTP $UST $AMGN ~
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$LNG Day Low Click Here: http://t.co/Vgni4mrYzy Also See: $EXK $SSO $DRYS $C ~
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$ERX Ideas Click Here: http://t.co/gbMZzs41sY Also See: $C $EXK $FB $XLB ~
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21 Oct 14 00:40:52
$DD News Click Here: http://t.co/CMjbWoc3mI Also See: $EXK $TLT $CENX $PG ~
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20 Oct 14 19:23:41
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$GDX Bid Size Click Here: http://t.co/rdjANyWny4 Also See: $CAT $STRP $EXK $XLE ~
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20 Oct 14 03:37:26
RT @rosnerstocks: $EXK Day High Click Here: http://t.co/AWdZo3zgh1 Also See: $VXX $MYEC $IBIO $EDN ~
Investors Hangout
20 Oct 14 03:24:36
$EXK Last Price Click Here: http://t.co/d4R4iFrnby Also See: $NVDA $DRYS $DIS $SMN ~
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20 Oct 14 03:11:47
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20 Oct 14 02:00:30
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Stock Forums
19 Oct 14 21:34:41
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19 Oct 14 18:08:48
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Investors Hangout
19 Oct 14 17:58:29
$ARIA Summary Click Here: http://t.co/woM4JJ4lKI Also See: $TLT $GE $EXK $STRP ~
Investors Hangout
19 Oct 14 17:06:26
chartguy89: EXK 4.08 Stock Charts $EXK Endeavour Silver Corp. http://t.co/R3YmJn1ejy
Investors Hangout
19 Oct 14 17:06:23
chartguy89: EXK 4.08 Stock Charts $EXK Endeavour Silver Corp. http://t.co/DSnfkaAjlm
chartguy89
19 Oct 14 17:04:33
EXK 4.08 Stock Charts $EXK Endeavour Silver Corp. (NYSE) Last Updated: 10/19/2014 19:04:35 EXK Stock Chart - 1 http://t.co/rF0jhlgAWm
John C Mueller
16 Oct 14 20:27:22
SILVER is a laggard right now, which is great for those not fully invested yet! I want to buy $EXK $SSRI $USLV $CDE http://t.co/L5aBYz4jNB
Bail O'Nomics
15 Oct 14 15:10:10
Silver Rounds vs.American or Canadia Silver Eagles Does Face Value Matter? $SLV $SLW $AGQ $EXK $HL $SI_F $PSLV $CEF http://t.co/OIq6GVGvk2
RC
15 Oct 14 09:30:07
Today’s Hybrid Movers | Momentum Trading with RaginCajun http://t.co/3VfOt4azEC $SLW, $SWN, $IAG, $EXK, & $ZU
Bail O'Nomics
14 Oct 14 18:01:09
US Mint Sold 450K American Silver Eagles today. MTD sold 2.95M Sept total 4.14M $SLW $SLW $SI_F $AGQ $EXK $AG $ZSL http://t.co/274CRkgWlu
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14 Oct 14 15:53:23
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Investment Idea
13 Oct 14 21:35:33
RT @chart_freak: Posted a new report this a.m. at http://t.co/Y111ZJ4kUZ regarding $GDX $GDXJ $EXK $JNUG $SILVER $GOLD and so on http://t.…
Edward Gofsky
13 Oct 14 19:02:49
RT @chart_freak: Posted a new report this a.m. at http://t.co/Y111ZJ4kUZ regarding $GDX $GDXJ $EXK $JNUG $SILVER $GOLD and so on http://t.…
				
				
By  +Follow February 21, 2014 8:46AM
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