North American Palladium Ltd. (fka PALDF)

[PennyStockInvestor]

Financial fancy footwork

My take is that the likelihood of PDL staying alive is much better now than a few months ago. The reason is that a fair number of debtors have converted and so total debt is reduced. The flipside is that there are now about 425 million shares (making some assumptions and we should be prepared that the number will climb to 500 million within a year ot two.

Palladium needs to average over $1,000 to make the company healthy and they also have to do something that they have not done before; execute the plan.

There is so much clever fancy financial footwork going on that it is hard for anyone to get a grip on the share and debt amounts.

Employees and debtors can relax now. The shareholders will be left with something, thanks to South Africa but it is too early to smile yet. One bad Quarter in the future would scare the market because of the long history of bad execution and one more scare would be sufficient to make additional raising of capital nearly impossible.

It is an odd story for sure. Fantastic producer to be in, a great jurisdiction and the worst of the worst management over the years.

Read more at:
http://www.stockhouse.com/companies/bullboard/t.pdl/north-american-palladium-ltd?postid=22469085