I hope we're not looking at another URONE here - that would be 2 big hits in one year. Its strange 'cos everything about the company seems sound, experts like it, and although Plat is a little out of flavour right now, the price has fallen far more than can just be accounted as 'a normal fluctuation'. And the company is not saying anything. I think Sergeant should have a look at this company.
Some experts do not like this share A. I believe it will stop at +- R 5-65 and I personally believe that even when buying at R 5-65 one must be prepared to hold for a reasonably long time. It is my view that trading any company with a neg PE is quite a significant risk and that one is always exposed to sudden and significant moves by the share.
As an exploration company they are going to have a negative PE until they start producing more than they are spending - around 2014 according to their BFS. It's a good, well managed company, so one for the long term - as long as platinum stays strong, and the rand weak. I'll look at buying some soon (in 2008), with a 10 year view.
Thanks for the reply M. I agree and am waiting to do exactly the same. My target price I am prepared to pay = antyhing below 610. Do you have a price in mind where you will feel comfortable you will pay a reasonable amount for the share?
On a market cap per ounce basis I'll wait for it to drop a little lower - into the low-mid R5's. It's still overvalued on this basis compared to producing peers, and it will still have to raise capital to devlop the mine - so there will have to be more share dilution. Of course, a competitor might take the chance to take it out at these levels too! I'll be interested to see if they can do a deal with neighbouring PTM, which is listed in Canada, and with which they share a lot of the same ground.