Under the right conditions, incredible strides can be made by simply standing still.
Technically speaking, Silvercorp Metals
The following five-day chart from Yahoo! Finance shows recent highflyer First Majestic Silver
Meanwhile, an outlying 24% retreat for the iShares Silver Trust
What makes the relatively stable performance by shares of Silvercorp Metals so very remarkable is that the company had recently been under concerted attack by anonymous individuals leveling serious allegations that briefly rattled the nerves of longstanding investors. I did my part to help set the record straight after the company revealed the existence of the first anonymous letter earlier this month, but of course the company itself deserves all the credit for mounting a rapid, transparent, and highly effective refutation of the various allegations on the company's website.
Having exhaustively reviewed the publicly available claims and supporting documents from both sides of the discussion, it is the concerted opinion of this Fool that Silvercorp Metals will continue to emerge from the allegations of these anonymous short traders with its reputation and credibility intact. I also note with interest the disclosure from the anonymous entity Alfred Little circulated last Thursday, stating that because of "a lack of ability to borrow SVM shares to sell short, contributors to today's report currently have no position in SVM but may initiate new positions at any time." That is certainly encouraging news for Silvercorp investors like myself, and it may help to explain the stock's noteworthy resilience in recent days -- although it doesn't necessarily mean the short-attack is yet complete.
I believe the longs will carry the day here, though the road ahead could be fraught with volatility. Although I reduced my own position slightly to favor silver stocks that are not in the crosshairs of vocal shorts, I must say … the stock's performance over the past few sessions thus far has me second-guessing that decision. But I'm more interested to know how you've reacted to this complex and fluid situation. Are you long, short, or sticking to the sidelines? Post your comments below, and to follow this developing story, be sure to add Silvercorp Metals to your Watchlist.
Fool contributor Christopher Barker can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He tweets. He owns shares of Endeavour Silver, First Majestic Silver, Great Panther Silver, Silvercorp Metals, and Silver Wheaton. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.