price target - 6 months, page-21

HF

Here are just some of myths and misconceptions perpetrated (not necessarily by you)

1) It is possible to use TA on a stock that had just a massive market-moving announcement. Choose your fav TA technique - pivot points, resistance, reverse head and shoulders, double pheasant bottoms (I am kidding), doji, ninja (kidding again), dead cross, bullish piercing pattern gaps, bollinger bands, you name it - all gobbledegook - if applied to today's PLA trading or ANY TRADING after such an announcement, positive or negative. May be some of it can be applied to relatively stable blue chips. If this works for you, fantastic.

2) People look at the latest trading volume being close to 30% of shares on issue, and conclude that 30% of shares changed hands. Goobledegook #2. If MQG or some hedge fund is running an accumulator or reverse accumulator algorithm on this stock, it will turn over 10 times more volume that the actual number of shares that will change hands eventually. In reality, probably only around 3% changed hands. E.g. they put orders on both buy and sell side whether they are buying or selling to control the SP.

My take: PLA was beaten up based on Smokey Hills situation. The market concern was that it will continue to bleed cash. The anno suggests that it is not necessarily the case and they possibly turned the situation around. If the operation is cash positive, then PLA is worth much more than its 37 Mil MC. Contrast it to just prospective pieces of dirt sometimes valued at 100 Mil+ MC with nothing but traces of mineralization and nearology. Here you have a resource, a working mine, hundreds of staff. In short, IMO risk to downside much less than risk to upside. My guess it will keep going up for a while as retail investors and institutions realize the balance of risks. Whether it will be profitable and stable operation long term is anyone's guess.