0,295. SUPPORT BROKEN FREE FALL NOW!!!!!!! next target is somewhere in the no where say again thank you to mjkii
Somehow I did not feel that fall??? Thank you for selling me lots of shares today at $0.29. I wanted four for a buck, but you take what the market will give you. This has been a great week for accumulation and now we have a three day weekend to celebrate. Life is good and "Petaquilla es Panama!!"
Down 20% in a week seems pretty bad, until you weigh PTQ's performance against the performance of physical gold, gold explorers, and gold producers. Based on the Mining Almanac chart below, it's easy to see that PTQ has been out-performing all three and has only recently regressed toward the mean.
It's easy to give PTQ a hard time for not performing if we don't look at any other stocks in the sector. PTQMF is down 20% YoY, but a few other stocks I watch, like Northern Dynasty (NYSEMKT:NAK ... -47%), Taseko Mines (NYSEMKT:TGB ... -24%), and Veris Gold (TSE:VG ... -71%) are down even more, in some cases much more. Even big names like Yamana and AngloAshanti are down 21% and 39%, YoY, respectively. The simple fact of the matter is that an ebbing tide sinks all ships and the money has left the sector in favor of gains to be made in other securities, largely propped up by the central banks.
It's bargain basement prices across the board in the mining sector. I had buy targets of $2.50/sh for NAK and TGB, and $1.00/sh for VG, and all three plummeted below those targets. So if someone wants to invest in mining, the question becomes, which miner do they want, because they're all cheap right now.
Ultimately, the question is where one thinks they'll get the most return on their investment, regardless of sector. If one believes the Fed can inflate us out of the Great Recession, then blue chips are the way to go. However, if one believes that all this money the banks are collecting from the Fed in the form of Operation Twist purchases has the potential to create an enormous bubble when the economy starts to improve, they start loaning that cash out, and the Fed is forced to raise the federal funds rate to ridiculous levels to keep inflation under control OR if one believes that the economy will continue to falter and central banks will be forced to take more aggressive measures to get the economy moving again, such as Japan is doing now, then gold still seems like a worthwhile investment over the long-term. Kitco is still estimating $1639/oz gold for 2014.
Everyone can feel free to give me crap that the Perfect Storm I predicted for APR 2013 didn't come to pass, but many of the elements are still there. The economy hasn't improved. The stock market is being artificially inflated. Gold is due for a comeback when people realize that they're investing in a house of cards. Our fundamentals are solid and we're profitable. With gold taking a hit, we could see more of the buying frenzy I predicted because banks don't want to loan money to explorers and explorers/juniors won't be able to stay in business unless they're profitable ... we're profitable. So from my perspective, the Perfect Storm will probably be more of a heavy rain and it won't come to pass for another 6-12 months. Fall 2013 to Spring 2014 is my target range for PTQ to bounce back in a big way.
All that aside, I'm a little peeved that PTQ has downgraded their production projections, but I'm all for it if the new projections are more realistic and they can actually stick to them. I'm also not happy that PTQ isn't buying back shares at these prices. Maybe they are and the purchases just haven't been posted yet, but if we're so profitable, can't we afford a little to shore up the SP? At these prices, PTQ could buy back 10% of the O/S and still have half of it's operating profit from last quarter left over. In the end tho, I think we're solid and we'll be doing well come this time next year.
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