Thursday, March 21, 2013

Silvercorp (SVM)

About a week ago, Silvercorp announced ( that it was dropping its defamation lawsuit against for reports that intensified a wave of selling of the stock after the silver smackdown of 5/11.  I remember the entertainment of reading the yahoo message boards for SVM back then, trying to figure out who had the real info, who were trolls, bots, alfredlittles and SVM shareholders--even Wynter Benton made an appearance.  I had sold my SVM for a loss already, but the relatively low price seemed tempting.  But it just kept going down.  Silvercorp hosted a shareholder event around that time to meet with investors and discuss details of the story.  A good friend of mine went up to Vancouver to see if his BS alarm would go off, but he said not even close.  He talked directly with legal counsel for SVM and reported that (A) his BS meter didn't go off, and (B) it seemed like the guy was even a little suspicious of him!  So, while we didn't buy the story about spies analyzing some "ore" that fell off the trucks in China, you couldn't argue with price.

Having said that, I would have guessed that SVM's decision to drop the case, which to me, as an onlooker and investor, seemed credible, would have lowered confidence even further:  "They must be dropping it because they know they have no case."  However, after an initial two day drop following the announcement, SVM has shown good momentum to the upside, with what look like higher highs and higher lows:

It's been a long time since SVM has tagged the 70 on the RSI 7 or the upper BB.  To me, this is an interesting turn of events.  I have to admit that the seeds of doubt planted by alfredlittle are still there, but, again, you can't argue with price, no matter the direction.  Maybe I'll be interested during the next DCL on this one if it can manage a breach of the 50dma.

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