pan american and silver standard had a lot in common. executives have worked for both companies, and they had a joint venture at manantial espejo. but even though pan american will produce close to 20 million ounces of silver, there is no question that silver standard is the superior company.

1) pan american owns 8 small mines, while silver standard has much more robust projects with greater economies of scale

2) pan american has invested in bolivia

3) pan american didn't find 700 million ounces of silver in mexico

4) pan american didn't find 18 million ounces of gold in british columbia

5) pan american didn't buy 2 million ounces of silver bullion and sell it at a huge profit

and now i will add to this list:

6) pan american issued 5.5 million shares, priced at only us$16.25. this is a time to be buying mining shares, not selling them. the market understands that, so paas is down $1.30 today, and the resulting dilution may keep it stuck in the teens for some time, unless the price of silver finally comes to life. even if they are planning to use the funds for an acquistion, i doubt they could buy anything that could compare to the grass roots discoveries that silver standard has made at pitarrilla and snowfield for pennies an ounce.

in any event, silver standard (which raised its capital a year ago with notes convertible at $43.33) is a much better value, with much larger silver resources and a much brighter future.