Annual report released. This stock is undervalued
PAF released their annual report today.
Positive
Negative
My target is graphical only (so medium term target), the true value of PAF (long term) is above 50 GBX.
Positive
- Yearly earnings up 63%, now PER is at about 4. This is incredible !!!
- Insiders (CEO and financial executive) bought a lot of shares recently
- Dividend will increase 28.5% (vote in November)
- Stock buy-back announced (to be precised later)
- Awaiting a lot of infrastructure developments and prospection results (incredibly huge gold concentration vein investigated since 1 year)
- Strong graphical position, just above unbroken support (only momentarily broken by COVID crash)
- Gold leverage
- Penny stock that is at the moment not bought by big fish due to small market cap.
Negative
- Yields forecast to increase ? But PAF has an incredibly low PER and reduced his debt a lot.
- Operates in South Africa (country has inherent risk)
- All in sustainable price for gold increased by 9% at $1260/oz
My target is graphical only (so medium term target), the true value of PAF (long term) is above 50 GBX.
