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2/25/15

Two days of First Majestic (AG) (FR.to)

On Monday morning we wrote:

Bottom line: I keep coming back to that initial reaction on seeing the news release numbers and before opening the Reg Fs: "could have been worse". It looks like the quarter when FR.to stops turning the corner and actually turned the corner instead of promising to without fully achieving it. The main concerns are 1) working cap position needs to improve as there's nothing big on the current liabilities side that can be booted forward and 2) production guidance for 2015 is a little less than I'd imagined (not mountains less, just a little), which means it'll need to mine what it mines efficiently. 
Notwithstanding gold's move under $1.2k this morning and what that does to the sector in general, the market shouldn't punish FR.to for these numbers, they're ok. If you're in, hold.

Two days later, it's 13% higher and back to where it was this time last week when those who didn't want to hold the name through earnings started their selling: