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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
US_proptrader
31 Oct 14 06:47:31
$AU $EGO $EXK $IAG $INVN $SAND $SDRL $SLW $WNC autocharts @ http://t.co/hj7PGeTQk3
Large Void Bot
31 Oct 14 06:32:13
New 52wk Lows: $AUQ $EXK $SA $STAA
Pete
31 Oct 14 06:29:09
@KissTrades Hasn't finished yet. Hammer I discussed several times. Just gaining velocity. $GLD $EXK $NUGT.
Pete
31 Oct 14 03:15:36
Gold, more pain for $GLD $EXK $NUGT.
US Banking News
30 Oct 14 18:23:02
Endeavour Silver Corp Reaches New 12-Month Low at $3.12 $EXK http://t.co/R95Sp9rzgm
Pete
30 Oct 14 16:41:53
@BCEagle1974 My perfect trade as threaded chronologically and why was gold from $1900's. And some great gains on $NXPI $EXK $FDX and many +
Bail O'Nomics
30 Oct 14 13:20:13
A Snapshot of Global Silver Demand $SLV $SLW $GPL $SI_F $AGQ $EXK $ZSL $HL $AG $SVM $PSLV $CEF $XAGUSD $PAAS $SIL http://t.co/dElRzpxHgZ
John C Mueller
30 Oct 14 12:48:42
I would be buying everything in sight. NGD EGO EXK SLW JNUG BAA AG IAG you name $SLW $NGD $IAG $EGO $EXK $JNUG $BAA http://t.co/ypriZjTlIy
chartguy89
30 Oct 14 10:06:01
EXK Stock Chart $EXK $GMCR $HD $INFY http://t.co/1UV0vXUv2T http://t.co/3lJ0bYM3Fz
danrocks
30 Oct 14 09:19:21
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Pete
30 Oct 14 07:58:30
$GLD $EXK $NUGT Greenspan's policies that lit the fuse on gold in the $500's are no longer relevant. Follow the macro.
Investors Hangout
30 Oct 14 07:55:46
DennyT: MCD Basic Tech. Analysis $MCD $CYBR $EXK $CDTI http://t.co/yQCOvEI9nb
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30 Oct 14 07:55:45
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DennyT
30 Oct 14 07:42:39
MCD Basic Tech. Analysis $MCD $CYBR $EXK $CDTI $AKAM Barchart Opinion,200 Simple Moving Average,Stock,Recent N http://t.co/D5YMqZgbdH
John Michael
30 Oct 14 07:35:29
RT @SeekingAlpha: Update: Endeavour Silver Extends The Strike Length At San Sebastian http://t.co/V7UtbBF1m6 $EXK
Seeking Alpha
30 Oct 14 07:29:59
Update: Endeavour Silver Extends The Strike Length At San Sebastian http://t.co/V7UtbBF1m6 $EXK
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30 Oct 14 07:25:06
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Miguel Madrid
30 Oct 14 07:03:58
$EXK crash is painful. I'll load up a bit and lower my average.
Extreme Stocks
30 Oct 14 06:55:45
DennyT: PG Filings and Disclosure $PG $GLD $EXK $XIV $XLV http://t.co/6RKUOIwZWl
DennyT
30 Oct 14 06:55:22
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30 Oct 14 06:54:40
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Investors Hangout
30 Oct 14 06:54:39
DennyT: PG Filings and Disclosure $PG $GLD $EXK $XIV $XLV http://t.co/gYZ1iOZz5q
DennyT
30 Oct 14 06:53:50
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Investors Hangout
30 Oct 14 06:48:24
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Investors Hangout
30 Oct 14 06:48:13
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OTPicks.com
30 Oct 14 06:41:41
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Jake13
30 Oct 14 06:30:47
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Seeking Alpha
29 Oct 14 22:58:32
Update: Endeavour Silver Reports High-Grade Silver And Gold Results At San Sebastian http://t.co/C4ChRKMwb7 $EXK
BNK Invest
29 Oct 14 13:10:58
$EXK Crosses Critical Technical Indicator $SIL #gold #silver #metals http://t.co/NM27HEKQpD
Pete
29 Oct 14 13:10:40
@WallStreeTopGun I've been on the nose from $1900 with a few squeezes along the way which I gave buy sell points on $EXK for 100% More pain
ETrader
29 Oct 14 12:32:02
“@Investaup: $GLD $EXK $NUGT get that anvil ready hammer falling.” <-- Massive extreme oversold capitulation reversal in motion currently.
Pete
29 Oct 14 11:55:21
$GLD $EXK $NUGT get that anvil ready hammer falling.
Stocks News&Markets
29 Oct 14 07:31:28
$EXK - Report of Foreign Issuer (6-k) http://t.co/yrYHAqGCOt
NASDAQ
29 Oct 14 07:31:22
$EXK - Report of Foreign Issuer (6-k) http://t.co/9SZjkXy45c
Briefing.com
29 Oct 14 06:39:54
$EXK: Endeavour Silver drilling continues to define high grade silver-gold mineralization in Terronera Vein at San... http://t.co/UrWSjjtbBl
Anselmo Garza Jr
29 Oct 14 06:22:57
RT @StockSpotter: $EXK up 0.8% to 3.63 bullish setup alert #stocks #options #markets http://t.co/d61Vuxu89t
StockSpotter
28 Oct 14 12:35:35
$EXK up 0.8% to 3.63 bullish setup alert #stocks #options #markets http://t.co/d61Vuxu89t
Stock Relay
28 Oct 14 09:45:27
$IWM Financials Click Here: http://t.co/RlQl2EUcEW Also See: $INFU $EXK $BAC $APT ~
Miguel Madrid
28 Oct 14 07:57:25
$EXK CEO Bradford Cook exercises 51,700 shares and adds 20,000 @ $5.40. http://t.co/0sFaca8Ysg
Stock Relay
28 Oct 14 05:38:13
$FNMA Summary Click Here: http://t.co/ZgK2fTM07k Also See: $EXK $AKRX $QID $GGAL ~
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28 Oct 14 05:24:19
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28 Oct 14 04:02:04
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$EXK Volume Click Here: http://t.co/BA5J57JiFj Also See: $IWM $FFIV $LUV $IWM ~
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28 Oct 14 03:37:49
$EWY Last Trade Click Here: http://t.co/gSyuE4fTWJ Also See: $UGAZ $QASP $IBB $EXK ~
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27 Oct 14 21:27:24
$BITA Yield Click Here: http://t.co/WJ9dauF9dC Also See: $FXE $EXK $RYWYX $GDXJ ~
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27 Oct 14 18:19:43
$AKRX Stock Message Board Click Here: http://t.co/EtI7WK30Zz Also See: $APT $EXK $XLY $SH ~
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27 Oct 14 18:08:08
$AGIO Stock Message Board Click Here: http://t.co/lypCL58wzL Also See: $MYEC $CELG $JNJ $EXK ~
				
				
By  +Follow February 21, 2014 8:46AM
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