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Gold/Mining/Energy : Canadian Warrants Only

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To: koan who wrote (2476)2/7/2008 10:42:26 PM
From: PaperPerson  Read Replies (1) of 23089
 
Stand back and look at the palladium big picture ...



Against the backdrop of a continued run-up in palladium, it is easy to see PDL at $13 within a year.

Look where PAL/PDL has been against a background of lower palladium prices than today.

stockcharts.com

At $13, that would make PDL a $1.0 billion market-cap stock, based on 79 mm shares out.

The warrants at that point have an intrinsic value of $8, a 400 percent move from today's $1.60.

The warrants are good until 13 Dec. 2009 at a strike of U.S.$ 5.05. So again tonight, the stock at 5.03 u.s. is sitting right at the strike point, in an otherwise screwed up stock market.

Could we headed for a warrant with permanent intrinsic value, similar to the AEM warrant?

Michael
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