In this video, Taylor Muckerman spells out three reasons you might want to take a bearish position on Silver Wheaton (NYSE:SLW). First, the silver streaming business requires free capital. While there is currently little competition in the silver streaming business, a new company with cash could enter the market and erode Silver Wheaton's market share. Second, Silver Wheaton has had some good years recently, but now there is some concern whether or not they can keep up the momentum. Third, the company is highly leveraged to the price of silver, which is good if silver goes up in price, but bad if it declines. This investment is not for the risk-adverse.
Follow @t_Muckerman Taylor is an Associate GM in our Fool International operations. Prior to that he covered all things Energy + Materials as an analyst. Over the years, he has built an investing skill set to rely on when evaluating companies inside and out. While at the Fool, he has made appearances on CNBC and Fox Business. In addition, he completed his MBA at the University of Maryland and will sit for the Level II CFA Exam.
- Feb 1, 2013 at 1:00PM
- Energy, Materials, and Utilities
- The Gold-to-Silver Ratio Just Topped 75: Here Are 3 Silver Stocks to Consider Buying Right Now
- 8 Reasons Wheaton Precious Metals Could Be the World's Most Perfect Stock
- Better Dividend Stock: Royal Gold, Inc. vs. Silver Wheaton
- Better Buy: Silver Wheaton Corp vs. Royal Gold, Inc
- Why Silver Wheaton Corp. Shareholders Have Something to Worry About