Why Hecla Mining Stock Dropped 17% in June

Shares of North America-focused precious metals miner Hecla Mining (NYSE: HL) fell a touch over 17% in June according to data from S&P Global Market Intelligence. The interesting thing here is that the prices of silver and gold had little to do with the stock move, but you need to step back a little bit and look at the bigger picture to really see what's going on.

In a mid-June presentation to investors, Hecla noted that between Jan. 29 and June 11 its stock was up 59%. Its closest peer had advanced 19% over that same span. Those dates may seem a little random, but they aren't: Hecla's management noted the silver short squeeze that was going on at the time. That event was driven by Reddit message board speculators and, according to Hecla, its relatively larger advance "demonstrated brand value." However, since about mid-June, Hecla's stock has been in a downtrend that has, notably, continued into early July. 

Image source: Getty Images.

Continue reading

Source Fool.com