Tumultuous times historically offer some of the best opportunities to buy stocks, and the market's recent mess surely qualifies. That mess often leaves companies poised for big gains, and many investors think Hecla Mining
In our Motley Fool CAPS community, nearly 95% of the 805 investors rating the company are bullish, There's no shortage of reasons why those bulls think Hecla Mining will thrive; I've highlighted three below.
Here at The Motley Fool, we're all for looking at both the good and bad sides of an investment. Once you're done with this article, be sure to read the case against Hecla Mining, and then weigh in with your comments below or rate the investment in CAPS.
1. Improving operations
Following record second-quarter silver production and improving liquidity, Hecla recently upped its production guidance for the year, while slashing its cash cost per ounce of silver by more than a third. As a result, cash flow is up, and the company's now expecting full-year cash costs to come in at less than $3 per ounce. The increase in cash flow is being helped by a sharp rebound of byproduct base metals prices.
2. Precious metals rebound
Hecla Mining, Newmont Mining
3. The inflation card
With signs pointing to weakness in the dollar and long-term inflation, many investors find gold and silver a great place to store wealth. While investors typically flock to gold producers such as Yamana Gold
The Motley Fool Stock Advisor service looks for companies with strong management poised to beat the market over the long haul. To see all the stocks that have helped Tom and David Gardner beat the market by 48 points on average, take a free 30-day trial.
Fool contributor Dave Mock still owns an ounce of silver he bought more than 25 years ago. He owns no shares of companies mentioned here. The Fool's disclosure policy once wore baggy pants and gold chains, but you won't find any photo evidence of it floating around the Web.