Prairie Downs Metals (PDZ) - Base Metals Minnow

[Bobbyvee]

Well hope you right Huang Chung and there is nothing to worry about, nevertheless I have decided to bail out for the time being - Why? Fear that where there is smoke (management changes with no clear explanation) there may be fire.

[Huang Chung]

You've got to back your judgement Bobbyvee, and I definitely understand where you're coming from.

I think the worst might be over, but nervous holders will undoubtedly keep the price down for a while, as they look for an opportunity to exit.

There is (I presume) one seller of 200,000 shares sitting at 40c, which is putting a ceiling on the selling price.....probably would be better for everyone if they pulled that sell order and dribbled the shares out...they are certainly having no success with their current strategy.

I bought a few shares late last week, and have another bid in at 30c. LME zinc and lead stockpiles seem to be turning down, which is a good sign. Some positive news on the MD front and drilling results should send the share price heading in the righ direction. I don't think they'll have much trouble increasing the zinc/lead/silver resource, but it seems they have not yet got a grip on the copper finds (there again, with only 821m drilled, this is not surprising!)

As frustrating as it is, I'll try and be patient.

[njat]

There appears to be at least one major seller in the market which is HSBC who in the month of june dropped 831,000 shares and clearly intends to sell their entire holding which at end of june meant they had another 2,816,608 to dispose of. Hopefully with the large volumes we saw after the copper announcemnt he has got rid of a lot more. As you say jittery sellers will continue to keep the price low for sometime i expect. I however will hang in there, it has been a long ride but I'm not getting off now as a couple of good announcements and a change in sentiment can change the whole ball game. Like farmer George i will wait for some positive news before I am abuyer again.

[FarmerGeorge]

22 cents?! Now we're really getting silly, methinks I'm a buyer

[Huang Chung]

Well, FG, step up to the mark this arvo will you!

I think we've reached what might be called 'capitulation'.

[drillfix]

Well, FG, step up to the mark this arvo will you!

I think we've reached what might be called 'capitulation'.

Hi Huang,

Man this has fallen like many big time.

Every single thing seems to be a BIG BAD JOKE, but it definitely is NOT FUNNY at all.

No wonder there still is a Blood and Guts on the Floor thread in this forum, because that is what it feels like, or at least to me.

Good luck on this one HC, I hope like many stocks, they can rise out of these ashes or fall no further but who in the world has a Crystal Ball on this matter.

Some folk say this, some say that and nothing makes sense except the fact we all should have had cash out last year (at least).

[Huang Chung]

Hi Drilly

Man, this one's slowly killing me......

Most of the fall has come through pretty low volumes. I'm a bit pissed that the Directors haven't stepped up to the mark and bought a few shares, or at least provided an update of the drilling campaign and their cash position.

What is sorely missing right now is confidence in the future of this company....low zinc/lead prices, credit crunch, no MD, unknown drilling results and poor communications. Honestly, I can't blame people for bailing.

The known PDZ resource would currently be worth about $800m. A reasonable valuation at this stage of development would be around 5% of the IGV, so say $40m. Then you could ascribe any value to like for the blue sky.
Market is currently saying this resource (in this company's hands) is worth about $12,000,000 ($18m market cap less say $6m in the bank).

Of course, if they can't secure funding, its worth nothing to them unless they put the deposit (or the company itself) up for sale. Looking at the PEM deal yesterday, I don't think they'd get very much at the moment in any case.

So I'll just hold and hope that we're still around to see a better zinc price and easier access to capital.....Unfortunately for me, it might be quite a wait.

[FarmerGeorge]

Don't get too down HC. This is sector wide: take a look around at other explorers as far from production as PDZ. Probably looking just as sick relative to where they were a year ago. I've dumped a few stocks over the past few months as they dropped and dropped (and have continued to drop and may not ever come back) but I'm holding on to PDZ. This is a huge correction in the market and many stocks which were hyped will not come back regardless of the environment going forward. But my belief is that PDZ is just sufferring from the rest of the market and will outperform when things turn. Such is the life of investing in junior explorers.

[Huang Chung]

I waded in and picked up a bag full today FG.

Probably the actions of a crazy man, but I'm hoping that a lot of the cloudiness currently engulfing PDZ will dissipate by years end.

[tricha]

I waded in and picked up a bag full today FG.

Probably the actions of a crazy man, but I'm hoping that a lot of the cloudiness currently engulfing PDZ will dissipate by years end.

Brave of u Huang, but if u believe in something strong enough, why not.

Personally my view is zinc is stuffed, China used to be a very large net exporter and they are back into it now.

From what I have read, they have mountains of it.

U should have ploughed back into PPP, not many companies out there that have mountains of cash.

Food for thought.