first stock i bought (looking good), page-3

sam / for your first stock pick and stock purchase you have done extremely well or maybe its just beginners luck.

have you read my previous stuff about why I think it is not only a good short term investment, but a good long term investment too ?

while the company has an established, efficient world wide distribution network for its product it needs the price of silver, and the exchange rate of the $A to be favourable in order to make good profits.

so now the stars are aligning for SDI with the $A exchange rate having reduced in the order of 17% over the year and the price of silver reducing by in excess of 33% over the same period.
The floundering Australian economy will see the $A fall even much lower over the next few years, and silver is still well above its long term mean price.

if you look back on the long term charts you will see there were periods where SDI traded at much higher levels than now, in fact over one 12 month period it traded at above $1.70 and even hit $2.00 - same management but much lower $A and price of silver.

i'm not saying it will get up to those highs again but i do think that the stock still has a good way to go.

because the volume of trade is spasmodic you will need to have patience in spades to stick with it.

it is in fact a play on the price of silver and the $A so you can expect quite a bit yo yoing with the price as well.

I have got a lot invested in this one so lets hope for both of us that what I am saying proves to be correct.

three directors bought stock on the market during november which is also a sign of good news to come.

I am waiting impatiently for the half year results, it will be towards the end of February I think.

gk