North American Palladium Ltd. (fka PALDF)

[PennyStockInvestor]

Raymond James Reiterates Underperform Rating on North American Palladium

Recommendation

We reiterate our Underperform rating on PDL, but lower our target price to $0.30 (from $0.50), as we highlight the extremely dilutive nature of the proposed convertible debt financing to the existing shareholders. Our negative view of the PDL equity is further reinforced by what we view as aggressive 2014 operating guidance, lack of clarity regarding near-term mine plan and capital requirements, and management’s own admission of the need to raise additional financing starting in 2015 beyond the currently proposed convertible debt offering.

https://www.raymondjames.ca/en_ca/equity_capital_markets/equity_research/sample_research/docs/Daily%20Notes.pdf