My Take On Morgan's Silver Outlook

I recently got a subscription to the Morgan Report -- below is my review.

SHORT SUMMARY
The service is for those who want to be substantially invested in silver, including silver stocks. Coverage and recommendations on silver mining stocks -- large and small cap -- are the primary value this report offers.

I found Morgan's analysis of silver mining stocks to be worthwhile. In fact, I have many of the large cap stocks that Morgan recommends in my own portfolio already. At a price of about $80 for 6 months or $130 for a full year, I think the report is a good value for those who want to be invested in silver and silver stocks -- both large and small cap stocks. Personally, I prefer Casey Research for my mining stock newsletters (see my previous review of their BIG GOLD report) but the Casey Research BIG GOLD report I subscribe to is more focused on large cap gold stocks rather than the spectrum of silver stocks. They do have reports that focus on smaller cap mining stocks, but those reports are more expensive -- and do not focus exclusively on silver stocks.

As a general rule of thumb, I personally think spending 5%-10% of the amount you are investing into research can be a worthwhile endeavor, as picking the wrong stocks is generally the most expensive mistake one can make. This can include research reports, although it can also include trips to conferences, which I strongly recommend for serious investors as well.

MORGAN REPORT METHODOLOGY
The Morgan Report divides the stocks it recommends into three categories: "top picks," which are the most stable recommendations and are suited for risk-averse value investors; growth stocks, which are a bit more speculative; and highly risky juniors that could explode in value or go to zero.

Morgan's top picks are up significantly -- several hundred percent on average -- since he first recommended them. He is generally recommending a base position be held in stocks for the duration of the bull market, which Morgan believes is still going on and commenced shortly after the turn of the millennium.

Morgan's method for valuing stocks centers on finding companies he believes have great deposits in their possession that can yield large amounts of silver at low operating costs -- and have the management teams that can execute accordingly. To this end, coverage of silver stocks in the Morgan report includes sensitivity analyses, that offer hypothetical valuations and corresponding share prices targets of the company based on various potential prices of the metal in question.

MORGAN REPORT TRACK RECORD
Outside of the top picks, most of the stocks Morgan recommends are down since he recommended them -- though as the mining sector has been in a bear market since 2011, this is not entirely surprising. Morgan is still recommending these stocks, especially now since price has fallen quite a bit.

In terms of identifying major turning points, Morgan did correctly call the top when silver was above $49 in April of 2011. However, in his September 2012 report, he did state that the bottom was in, and recommended buying silver stocks and silver at $28 USD. Silver stocks and silver fell considerably -- silver is now below $20 -- so this call was inaccurate.

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