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Gold/Mining/Energy : North American Palladium(AMEX:PAL)- PGM Producer -- Ignore unavailable to you. Want to Upgrade?

To: Sleeper who wrote (826)	1/8/2001 8:58:51 AM
From: Bruce Robbins	Respond to of 976

Wow! Pd spiked over $1000! Bruce

To: Sleeper who wrote (826)	1/8/2001 3:07:59 PM
From: Elizabeth Andrews	Read Replies (2) \| Respond to of 976

I wasn't unhappy with your answer. I think that this is such a unique situation that using the PE model may not be the best valuation model for this stock given its remarkable position in the Pd market. For example, if Pd hangs around the US$900 level, this mine will pay for the expansion in one year. Then they could have free cash flow of US$125 million a year (no offsetting capital expenses). It could be in position to pay a very fat dividend for many years and it (the stock price) may start discounting a yield pricing model. Is this the best scenario for Kaiser? Is there an after-tax preference for dividends as a way for Kaiser to get its cash back at the lowest rate? I noticed they haven't sold any shares and in fact converted the preferred shares and dividends owing into common shares, as well as guaranteeing the bank debt for the expansion. It suggests to me a somewhat different exit path. I think the stock goes higher soon.