Notes

"Couer d'Alene Mines Corporation (CDE), through its subsidiaries, engages in the exploration and development of mineral properties principally in the United States, South America, Australia, and Africa. The company primarily explores for silver, gold, lead, and zinc deposits.

Announced a relatively massive takeover, buying... "Bolnisi Gold NL (BSG.AX) and Palmarejo Silver and Gold Corp. (PJO.V) in a friendly deal worth $1.1 billion to create the world's leading primary silver producer."

A $1B purchase by a $1B company will take a while to digest.

Whither silver? It is used for industry, jewelry, photography, investment, and coins. Photographic use is in decline, due to the rise of digital photography. Silver prices have climbed steadily since 2003, while demand has been flat. Industrial demand is increasing, probably due to silver's use in electronics.

The silver Institute:
http://www.silverinstitute.org/supply/index.php

19May07

Trailing P/E (ttm, intraday): 12.45
Forward P/E (fye 31-Dec-08): 9.15
PEG Ratio (5 yr expected): 0.53 <-- NICE!
Price/Sales (ttm): 4.48
Price/Book (mrq): 1.67
Return on equity: 13%
Debt/equity: 0.3
Current ratio: 6.7

Almost all assets are tangible.

GROWTH estimates
2008 sales: 45%.
Earnings positive for all future quarters and next year; 21% next 5 years.

Small insider buy on March 1.

Thoughts: Going nowhere fast, due to expenses of buying two companies, but a good long-term investment. Watch that current ratio plummet in the next year. Silver is a multi-purpose investment, used in electronics as well as financial industries.

23AUG07 $3.40

Market Cap (intraday): 938.37M
Enterprise Value (26-Aug-07): 845.87M
Trailing P/E (ttm, intraday): 14.98
Forward P/E (fye 31-Dec-08): 9.63
PEG Ratio (5 yr expected): 0.82
Price/Sales (ttm): 4.16
Price/Book (mrq): 1.50 (all tangible)

Current Ratio: 5.9
Debt/Equity: 0.3

Price/Cash Flow Ratio 10.00

Estimated growth estimates have declined a bit in the last 3 months, but are still good:
Revenue 2008: 35%
Earnings: current qtr. 0%; next qtr. 0%; next year 52%

Estimates for next 5 years average at around 18%, but how meaningful is that for a commodity-based business? Hm? 5-year PEG is 0.8

Thoughts. The one year growth rate is excellent, and the current valuations are all better than average for the mining industry. The stock is subject to speculation in the silver market, so it will be volatile. Silver is a multi-purpose investment, used in electronics as well as financial industries. CDE is making a big acquisition, which introduces some uncertainty in the immediate future,

12JUL08 - $2.56

Market Cap (intraday): 1.41B
Enterprise Value (12-Jul-08): 1.57B
Trailing P/E (ttm, intraday): 27.83
Forward P/E (fye 31-Dec-09): 7.11
PEG Ratio (5 yr expected): 0.87
Price/Sales (ttm): 6.29
Price/Book (mrq): 0.80
Enterprise Value/Revenue (ttm): 7.10
Enterprise Value/EBITDA (ttm): 27.068

This company now has negative net tangible assets. Avoid.

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