FSM Stock ,Fortuna Silver Mines Returns vs. S&P
| 1 YEAR | 5 YEAR | 5 YEAR ANNUALIZED | SINCE IPO | |
|---|---|---|---|---|
| FSM | +13.64% | -12.28% | -2.59% | -42% |
| S&P | -9.72% | +44.46% | +7.63% | +243% |
Shares of Fortuna Silver Mines
What has happened
FSM Stock , Although the price of silver has risen by nearly 6 percent through the month of November, many investors haven’t yet recognizing Fortuna Silver Mines ( FSM 3.90%) as a very attractive option at the moment. At 2:08 p.m. (EST) the FSM shares are down 15.6 percent, and have rebounded somewhat from a decline of 17% earlier during this trading day.
Investors are making the decision to sell their shares in the event that doubts about the continued operation of the company’s main gold and silver asset within Mexico, San Jose, is growing. In addition, analysts’ bearish view of the stock is providing additional reasons for investors to get rid of their stakes.
What’s next?
In its report of third-quarter 2021 results yesterday, Fortuna Silver Mines failed to meet analyst’s earnings and revenue expectations. However, that’s not likely to be the primary concern for investors today. Instead, they’re likely to be to sell the stock because of the uncertainty surrounding San Jose’s capability to keep operating. The permit that allowed Fortuna to run San Jose expired in late October, Fortuna states that it continues to operate this mine “under the protection of the Mexican courts.” Fortuna is currently working to obtain an extension of the permit that would permit operations to continue for an additional 10 years. But there’s no guarantee that Fortuna will get it — which could be devastating to the business.
The negative attention Wall Street is paying to the stock is a further issue that has been that has been weighing on the minds of investors. Canaccord dropped the stock’s rating by removing the hold from sell According to Thefly.com. Similarly, BMO Capital downgraded the stock to market perform, from outperform.
What do we do now?
Due to the significant amount of uncertainty surrounding San Jose, it’s logical that investors are removing themselves of positions with Fortuna Silver Mines. There are many alternatives to stocks of silver as well as gold stocks worth considering.
