North American Palladium Ltd. (fka PALDF)

[livinginstyle]

According to one Seeking Alpha writer, PAL could see $1 by years end. See full article at: http://seekingalpha.com/article/2707655-the-turnaround-story-at-north-american-palladium-is-growing-legs

The chart indicates that PAL has been in a strong downtrend for the last two years. Over the last six months that downtrend has started to flatten. With the Q3 2014 earnings report and the Q3 2014 Drilling Report, the fundamentals have changed to a much more positive outlook.

Unfortunately PAL has had credit problems, so it also has credibility problems. Investors likely will not rush into PAL until they see the likely great results from Q4 2014. Investors who are willing to take a chance can probably make some good money investing in PAL at this time. The turnaround story is looking substantially more solid after the Q3 2014 earnings report, the Q3 2014 Drilling Report, and the October 2014 unofficial production report. PAL is a buy even on low credibility.

I wouldn't put too much money into PAL; but PAL stock could easily reach $1 or more in the next year. If it did that it would be more than a seven-fold increase from the closing stock price of $0.14 per share on November 21, 2014. Some point to PAL's lack of ready cash; but PAL's management says it expects more of its $60 million credit line to become available in Q4 as it proves its production has increased. Plus it will get more money from sales during Q4 2014. I find management's argument very compelling. As long as there are no disasters in the near term, PAL would seem to have turned the corner. It is a buy.

To further back up this assertion, PAL has recently been negotiating the acquisition of equipment from Caterpillar (NYSE:CAT) using Caterpillar Finance at attractive rates. Caterpillar would not likely be willing to do this unless it viewed PAL as a reasonably stable concern. It seems a virtual certainty that Caterpillar has gotten a good look at PAL's books. PAL stated in its Q3 2014 earnings report, "a major recent agreement at very attractive rates was agreed to in the third quarter with Caterpillar Finance." This sounded like at least some purchases would be made soon without PAL having to go to find extra monies from anywhere but Caterpillar Finance. This is one more encouraging sign that PAL has finally turned the corner.