ORIONS Money Stocks

[rru2s]

$PAL selloff is overdone. Prior to Friday's financing deal, the risk of a potential bankruptcy and/or severe dilution was baked into the PPS by at least 40 cents to 60 cents per share.

While a knee-jerk selloff is a typical reaction to 10% dilution in a mining stock, astute investors will realize that PAL is now assured of completing their palladium mine and going into production before the end of this year. This one fact effectively de-risks the stock from here to the end of the year. Palladium metal has not and will not correlate with gold price deterioration due to critical industrial uses and a very limited world supply, which have been supporting and driving up the price of the metal. I expect smart money knows this already and will begin buying PAL over the next week. The knee-jerk reaction to the news creates a great ground-floor opportunity for a miner that is very close to beginning production. Just my opinion.