SWC to Rally BIG Next Week, Palladium Hits 3 Year High!
Jonathan Lebed Newsletter
The market is down big today but my brand new speculative rating of 2 stock to watch Stillwater Mining (SWC) is up $0.31 to $15.61 per share and looks ready to make a massive rally next week! In recent years, Palladium has replaced Platinum as the precious metal of choice for nearly all catalytic converters used in new cars purchased in the U.S. and China. Unfortunately, over 40% of Palladium production comes from Russia. In recent years, Russia`s annual palladium production has been rapidly declining as demand for Palladium rapidly rises, which has led to HUGE annual palladium net supply deficits! Palladium is up 235% over the past 5 years, gaining 12X more than platinum, 5X more than gold, and 4X more than silver – but Palladium would have already gained substantially more if not for Russia unloading about 1 million oz per year from its stockpile. However, Russia`s palladium stockpile is now believed to be just about completely depleted. Due to Russia`s rising tensions with the U.S. and the fact that the U.S. desperately needs to import Russia`s palladium for its automobile sector – Russia could soon halt palladium exports, which will give Russia the perfect opportunity to rebuild its depleted stockpile! The last time Russia halted palladium exports in order to rebuild its stockpile was in 2001, which caused palladium to rapidly rise from less than $200 per oz to a new all time high of $1,100 per oz. At $1,100 per oz, palladium was worth 1.8X more than platinum, which was $612 per oz at the time. Today, platinum is worth $1,460 per oz, which means if palladium once again rises to 1.8X platinum – we could see palladium reach $2,628 per oz within the next 12 months! In 2013, SWC`s revenues increased 30% to $1.04 billion! In 2015, SWC is expected to grow revenues to $1.25 billion! SWC is currently trading with an extremely low enterprise value/revenue ratio of only 1.6.
In early-2011 when palladium reached $850 per oz, SWC soared to a high of $25 per share – where SWC had an EV/revenue ratio of 4.50. With palladium getting ready to make a move to $850 per oz, SWC could easily reach $25 per share soon! In fact, if SWC generates revenues in 2015 of $1.25 billion and returns to an EV/revenue ratio of 4.50 – it would equal $48.56 per share! Remember, as the only major palladium producer outside of Russia and South America, SWC is the palladium stock that NIA believes is worth considering. As more investors start learning about today`s strength and momentum of palladium, interest in palladium stocks will rise tremendously – and SWC, as the only solid producing palladium stock, could become the #1 hottest large-cap stock on Wall Street before the end of April! Jonathan Lebed This message was sent to from:
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