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January 31, 2006
Cramer Likes Silver and Pan American Silver (PAAS)
Jims goes on to say: Want a silver play to help make money from inflationary pressures in the market? Cramer said to look at Pan American Silver (PAAS) a Canadian company. The company's margins are expanding and that its growth is accelerating. Combine that with rising silver prices, and, he said, there's a lot to like.
Obviously Jim is not alone as PAAS moved from the low 12s to the low 22s. The stock formed a nice rising price channel over the last eight months and recently moved above the upper trendline on big volume. This has created an overbought situation and the stock is ripe for a pullback or consolidation. Now is not the best time to buy and I would be more inclined to wait for the Stochastic Oscillator to become oversold (gray ovals) for a better risk-reward ratio.
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Posted by Arthur B. Hill at January 31, 2006 06:34 AM