Hecla Mining Company (NYSE:HL)

Q: Hello Chip,
I was invited by tradingmarkets.com to email you.
I own some HL stock which is not performing well (yet). You seem to be negative about it, and I am tryuing to learn (and paying for it).
My thoughts were these: HL once sold for 30 bucks. It has gone down down. I bought it for 3. It has substantial mines, its not making horrible losses, and although silver is going down, I expect it to go up again soon.
Would you be so kind and help me on this:
What fundamentals give it a long term rating of 1?

Thank you very much, from Holland.

A:We issued a Downtrend on HL back on June 17th @ $2.62.  Our system isn’t necessary negative on the fundamentals as it is a technically oriented program.  Based on several proprietary algorithms, when it detects bearish price action and predicts lower prices, it will issue a Downtrend alert and that downtrend can last anywhere from a few days to a few months, with the average being about a month. Specifically to HL, our downtrend came right when it broke under the 200-day moving average which was an important support line.  It tried to rally after but has since re-tested the average and has no fallen back below.  The next area of support is the $2 level where it was pretty much all of April.  Once t can find a support level, then it has a chance to rally if some of the fundamental reasons you cited about silver prices pan out.