IKN

Every why hath a wherefore

I thought First Majestic (FR.to) (AG) was underperforming the market, but…

…it’s not really.
Sitting in a park and the kids are doing an Arabian Dance workshop, which has given your humble scribe a pleasant and sunny little catch-up time with the market. I had this impression that First Majestic (FR.to) (AG), for so long a leading junior producer, was underperforming somewhat in this sector rebound but as things turn out (I hope that chart is representative enough) it’s not doing that badly as it depends more on what you’re comparing it to. Tinycap producers such as IMPACT Silver (IPT.v) have bounced hard and Fortuna (FVI.to) (FSM) is flavour of the week all of a sudden (sidebar: now looks overbought). Then come a raft of names and then the GDXJ junior producer ETF. Only then do we have FR.to, but check out the other company that’s performed virtually identically, Pan American (PAA.to) (PAAS). And +15% may not be as stellar as FVI, but it’s still nothing to be sniffed at after less than a month’s action.
There’s the rub, methinks: This market has changed its attitude towards FR.to and these days it’s being counted amongst the big and established silver producer names, not the growth or smallcap end of the sector. Or put more simply, First Majestic Silver is all grown up.
By the way I didn’t include Argonaut Gold (AR.to) on that chart, now negative 3% on 2014 year-to-date. Toldya it sucked.

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