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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
Ryan Goo
25 Jan 15 14:17:06
@ckz8780 what do you think of $EXK
Mark Trader
25 Jan 15 10:38:16
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $OGZP $VGGL $GST $RNN $YGE $EXK $REN
Mark Trader
24 Jan 15 17:55:56
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $OGZP $VGGL $GST $RNN $YGE $EXK $REN
The Legacy News
24 Jan 15 06:57:28
Endeavour Silver Corp Receives $6.43 Consensus PT from Brokerages $EXK http://t.co/9P1EmyA17O
John C Mueller
24 Jan 15 06:56:58
http://t.co/Cba639DbIQ 7.2Moz silver mined 2014 101,976,901 shares outstanding $EXK http://t.co/0x05NdKEEx
Ryan Goo
23 Jan 15 17:42:55
$EXK definitely oversold at the moment. Great time to get in now while there is a disconnect between commodity prices and stock price.
KC
23 Jan 15 09:29:19
this morning's FAILED smashing in $silver produced some lovely buy ops in little $silver stx: $gpl, $exk, $gss also in $gold $MUX $VGZ
Teycir
23 Jan 15 08:34:26
$exk short @ 2.87 I believe silver has more room to the downside.
Alex Li
23 Jan 15 08:01:59
$EXK if you missed it when i recommended to buy, its time to buy again now, support at 2.80$
KC
23 Jan 15 06:33:33
#goldcartel @federalreserve do usual opening smash on $gold $silver stx; nice buying op created daily, thx to manipulation $GPL $EXK $MUX
StockNewsWires
22 Jan 15 22:41:04
$EXK: Endeavour Silver Corp Short Interest Down 50.4% in December (EXK): http://t.co/VcLDjyb7cG
WKRB News
22 Jan 15 22:29:08
Endeavour Silver Corp Short Interest Down 50.4% in December $EXK http://t.co/FJoSdUONsy
Trader News Daily
22 Jan 15 20:31:05
Wow http://t.co/PeRPkZkWiw just posted last weeks results. +429%. Crazy. They offer a free trial too. $EXK $NRTI $ZGNX $WEST $ARO
Mark Trader
22 Jan 15 17:51:41
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $OGZP $VGGL $GST $RNN $YGE $EXK $REN
Stock Rocket
22 Jan 15 16:35:32
Check out http://t.co/5jbX6mNKQv. They have a cool and different way of doing trade alerts. Pretty cool. $WLT $ERHE $XCO $EXK $PVA $SMFG
Trader News Daily
22 Jan 15 12:05:24
Wow http://t.co/PeRPkZkWiw just posted last weeks results. +429%. Crazy. They offer a free trial too. $EXK $NRTI $ZGNX $WEST $ARO
Mark Trader
22 Jan 15 11:11:42
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $OGZP $VGGL $GST $RNN $YGE $EXK $REN
Bail O'Nomics
22 Jan 15 11:06:51
Save our Swiss Bank- the Fallout Just Beginning $JDST $JNUG $IAG $ANV $EXK $AG $GDX $NUGT $GDXJ $GC_F $GLD $JPM $GS http://t.co/ILFWYvAcwc
US_proptrader
22 Jan 15 10:49:28
$BBRY $BCEI $COUP $EGO $EXK $MBT $NDRM $NM $XON autocharts @ http://t.co/rTnYb8yj59
US_proptrader
22 Jan 15 10:34:28
$ACHN $EXK $FXCM $KGC $NAT $NSM $OCN $PDS $PPP autocharts @ http://t.co/rTnYb8yj59
US_proptrader
22 Jan 15 09:04:28
$ACHN $ANR $AUQ $AUY $BVN $DHT $EXK $GFI $NDRM autocharts @ http://t.co/rTnYb8yj59
US_proptrader
22 Jan 15 07:19:27
$ACHN $BAS $DDD $DHT $EXK $GDP $GFI $NG $ZIOP autocharts @ http://t.co/rTnYb8yj59
Wall Street
22 Jan 15 06:42:19
http://t.co/J58EN3ymNl has the most reliable picks in the market. The move fast and never fail. $GERN $NEON $EXK $MBHC $TPLM $LYG
Bail O'Nomics
22 Jan 15 06:24:29
EU Announces QE, Silver Spikes $SI_F $SLV $EXK $GPL $HL $AGQ $ZSL $SVM $XAGUSD $PAAS $SSRI $SIL $PZG $USLV $AUY http://t.co/dWRPxxwvT2
WALL STREET BOLSOS
22 Jan 15 05:00:29
RT @HotKeyTrading: Upgraded: $NTRS $SPN $AMZN $FXCM $SFM $WFM $COP $GTE $RF $CLDT $FLDM $EXK $VIAB $TMUS $SWN http://t.co/Vv2VEnpBuv #inves…
HotKeyTrading
22 Jan 15 05:00:09
Upgraded: $NTRS $SPN $AMZN $FXCM $SFM $WFM $COP $GTE $RF $CLDT $FLDM $EXK $VIAB $TMUS $SWN http://t.co/Vv2VEnpBuv #investors #dow #nasdaq
Mark Trader
22 Jan 15 03:36:47
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $OGZP $VGGL $GST $RNN $YGE $EXK $REN
Trader News Daily
22 Jan 15 02:38:47
Wow http://t.co/PeRPkZkWiw just posted last weeks results. +429%. Crazy. They offer a free trial too. $EXK $NRTI $ZGNX $WEST $ARO
Joe
22 Jan 15 01:50:24
RT @Investaup: @liauska I had a buy $1.80's on $EXK take some profit at $3.04 today. I have a buy on $TTNP at $0.47 with a $1.80 target. Bo…
ProVesting
21 Jan 15 23:56:02
$EXK: Endeavour Silver Corp Short Interest Down 50.4% in December (EXK): http://t.co/iihUfoBKkQ
InterCooler
21 Jan 15 23:49:44
Endeavour Silver Corp Short Interest Down 50.4% in December $EXK http://t.co/Nv3MJ1A65Z
Ticker Report
21 Jan 15 23:41:39
Endeavour Silver Corp Sees Large Decrease in Short Interest $EXK http://t.co/r0uYkU7lGR
US Banking News
21 Jan 15 23:39:41
Endeavour Silver Corp Sees Large Decrease in Short Interest $EXK http://t.co/8G6t904vTV
ProVesting
21 Jan 15 23:36:04
$EXK: Endeavour Silver Corp Sees Large Decrease in Short Interest (EXK): http://t.co/UlHHEMBDRH
HotKeyTrading
21 Jan 15 17:00:10
Upgraded: $SPN $AMZN $FXCM $NTRS $SFM $WFM $COP $GTE $RF $CLDT $FLDM $EXK $VIAB $TMUS $SWN http://t.co/S8EjpWh6wB #stocks #watchlist #spy
Wall Street
21 Jan 15 15:05:32
http://t.co/Orc7MfVtK6 has the most reliable picks in the market. The move fast and never fail. $GERN $NEON $EXK $MBHC $TPLM $LYG
Pete
21 Jan 15 14:00:13
@liauska I had a buy $1.80's on $EXK take some profit at $3.04 today. I have a buy on $TTNP at $0.47 with a $1.80 target. Book early.
Stock Rocket
21 Jan 15 13:24:18
Check out http://t.co/5jbX6mNKQv. They have a cool and different way of doing trade alerts. Pretty cool. $WLT $ERHE $XCO $EXK $PVA $SMFG
Pete
21 Jan 15 12:57:17
$EXK not far off.
US_proptrader
21 Jan 15 12:43:26
$BBEP $CLNE $CNET $EJ $EXK $NQ $OIBR $PPP $PVA autocharts @ http://t.co/rTnYb8yj59
Pete
21 Jan 15 11:09:26
Clipping some $EXK profits. ECB performs, Greece obviously not leaving EU EUR. $GOLD could get hit. 40% + here. Pigs & all that.
Alex Li
21 Jan 15 11:03:53
Today was an amazing day for me. $QLTS, $FXCM, $EXK- having a 21k unrealised profit is just amazing.
US_proptrader
21 Jan 15 10:55:26
$ASPS $BCEI $CNET $ECR $EXK $FCEL $OIBR $SD $VNR autocharts @ http://t.co/rTnYb8yj59
John C Mueller
21 Jan 15 10:50:48
Mining equities got a little toppy. I sold EGO and USLV and bought more EXK. $EGO $EXK $USLV http://t.co/vi9Yzn6Hiw
Mark Trader
21 Jan 15 08:37:34
The last http://t.co/8hGh2pPo4U alert popped over 400%. So sweet and free to sign up. $OGZP $VGGL $GST $RNN $YGE $EXK $REN
US Banking News
21 Jan 15 08:33:49
Endeavour Silver Corp Given Average Rating of “Hold” by Analysts $EXK http://t.co/DNjlZcEutd
Ticker Report
21 Jan 15 08:26:18
Endeavour Silver Corp Given Average Rating of “Hold” by Analysts $EXK http://t.co/0NSCTTMz6A
Time=Best Stock
21 Jan 15 07:43:07
RT @liauska: $FXCM- I told you! Up 28%. Please tell me that you listened to me. Please. Now, hold on to $EXK, because this stock is gonna r…
Alex Li
21 Jan 15 07:40:49
$FXCM- I told you! Up 28%. Please tell me that you listened to me. Please. Now, hold on to $EXK, because this stock is gonna run!
Trader Bob
21 Jan 15 06:56:59
Wednesday Dow opens + 2 and we at + $4,619 $EMES $EXK $SBGL $RTEC http://t.co/wf10Mw0Kzk
				
				
By  +Follow February 21, 2014 8:46AM
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