i don't think anyone can make accurate short-term predictions, due to the manipulated nature of the financial markets. but the long term is inevitable, so these are my forecasts for 2008 and 2009.

they are based on some assumptions, which may or may not be correct. first, the pirquitas mine will be commissioned by the end of the year. second, the price of silver and gold will be higher at the end of 2008 than they are now, and that we will see $25 silver next year.

i expect sso will trade at 40 by the end of the 2008. this reflects a 30-40% re-rating upward once it becomes a producer. producers sell at much higher values than explorers because the risks are much lower once the company has a steady stream of cash flow.

my forecast for the end of 2009 is 80. this assumes earnings per share of $2, and a PE ratio of 40, which is not out of line for a silver producer. in particular, this company is looking at strong production growth as san luis and later pitarrilla come on line, hence the high multiple. this forecast does not assume san luis will contribute anything to 2009. given the delay in moving to feasibility, i don't expect san luis to begin production until 2010.

the price movement to 40 and 80 won't be in a straight line, and there will be sharp moves up and down. but this company has the goods, and that will become apparent once pirquitas starts producing revenue and profits.

best of all, even if i am wrong about the timing, the stock will eventually reach those levels anyway. there can be delays due to technical, governmental or environmental reasons, but these things will be sorted out sooner or later. the price of silver and gold will inexorably move higher as the fed tries to paper over all of the banking failures, and all you have to do is hold this stock.