oversold, page-20

I could never have imagined Platinum Australia at where it is, especially on the back on relative very strong Platinum, Palladium and Rhodium prices.


A few reasons I can think of that has people adverse to stock:

* It is no longer in ASX 200 index benchmark (now in ASX 300 - which can be tracked by fund managers without buying PLA due to the size of the index)

* Sovereign risk of South Africa and its nationalisation (that doesnt explain that Goldman Sachs has a strong buy recommendation on Acquarius Platinum which also has mines in South Africa. However I do think their business cash flows are better)

* Ongoing labour issues and managements inability to resolve it

* Commsec has LVR of 40% on Platinum Australia - I suspect some of the price weakness has been due to margin calls?


Yearly Results come out tomorrow.

* Goldman Sachs has a forecast NPAT of -12.2m
* Previous Corresponding Period was -16.3m

Their presentation was well received initially by investors and if you have a read the company has encouraging projects and growth aspects - Look in:

http://www.platinumaus.com.au/ASX under presentations

Goodluck all.