Barry,
I have been in this stock for a few months and have weathered the good and the bad. I will tell you that this management is first class and is NOT involved in stock manipulation. PERIOD! There are groups of people who are playing with this stock, because:
1.) The latest news release stated that the resource update would not be out until late October. This got some people nervous and thus they started to sell.
2.) The PRO-TRADERS took advantage of this and started to sell at the market price and thus the stock fell. It only took 5,000 shares to drop the stock from $4.15 to $3.65. There were NO buyers. Once it went below $4.00, there was "panic" selling and thus the current situation.
3.) October, just like June, is selling month. Thus, many people exited this stock because they KNEW it would go lower in October and thus they could get "cheap" shares.
HERE IS MY TAKE ON THE FUTURE OF PAW:
I honestly believe that this company is worth more than its present stock price. I have calculated a price of $6.50 based on their advanced Sulut property and their grassroot Jambi property and the fact that they have $5 million dollars in the bank. The annual report that is due this week will include many maps for the FIRST TIME; it will also include location of all shallow drill holes. The main deposit is centered around Doup/Bentang. BUT GUESS WHAT?????
Some awesome step-out drill holes have been received from 500m NE and 500SW of Doup/Bentang. Here they are:
Parabo had holes with grades of: 10m @ 4.94 g/t
6m of 14.56 g/t
4m of 19.55 g/t
Tungai had the "best" results: 20.65m of 7.95 g/t
40m of 5.2 g/t
TALK TO ANY ANALYST (I have) and they will agree that these are major results for step-out drilling. NO QUESTION!!!!! This is why I am long on PAW and I am NOT worried about the stock price.
Finally, if you are looking for it to bottom, than you are looking at it. Thank goodness for McDermid - since they are supporting the stock at the current levels (i.e. bid 25,000 shares @ $3.10 and the ask is 100 shares @3.18). I believe that this stock will start to move once people see the annual report. I expect $4.00 again shortly and than >$6.00 after the resource update. My opinion!
Good luck,
David
P.S. If you see Yorkton or Midland buying, than it is a good sign to get your shares. These are the same guys that have been dropping the stock. |
