3.7 billion divided by 160 million equals $23.44 a share. Many experts think inflation is going to kick into gear this year.
I agree fully. If you read that Miner's Bliss piece in Seeking Alpha, (if true), there could be some incredible upside. At the time of that writing, they were thinking that they would get over $240 or so in the ground. Now the market seems to be evaluating things at $22 au in the ground. LOL or more appropriately- #$%$. AT $240 and 5 million ounces between the two mines measured/indicated- and $1,700 gold, you might have a price of $7.5 per share. If gold goes much higher and they find some additional reserves, maybe we have a "teens" price. Lots going for PZG. I am just taking some while guess. If Gold, were in the $2200 plus range, and the reserves when up to 7,500,00 ounces, you'd might get a price of $500 in the ground depending on how good the grade is. Somebody gets $16 billion worth of gold for $3.7 billion price. I'd take that deal every day. This would put PZG into the $20s. Just showing how it could be done. 3.7 divided by 160 million shares equals $23.44 a share for less than a 1/4 cost of the gold in the ground.
I think PZG should be accumulated now, imo. Inflation is going to begin to become apparent, and all the "tools" in the world, will not be able to hide it. People are not stupid, although ithey are treated as such, imo.LOL.
Sentiment: Strong Buy
I like your thinking !!! Based on your analysis looks like a first or initial entry in the low 80 cent level will pay back handsomely over the next 18-24 months. I have a modest stop trigger order in at 77 cents if it dips further in the next 2 weeks. Will support bigtime down to 34 cents. A $5-10 gold in the ground cost is not a bad price.
If you do the math, it appears that the market is valuing gold at $22 in the ground due to low gold price and cost of extraction. This is low. In the past, it was closer to $100 when gold prices were much higher. So, when gold goes up to $2000 per ounce, it might be reasonable to be around $100 in the ground. If they can increase their reserves to 10 million...(2 big ifs) then we might see a price of $7 or so depending on the fever. My opinion is that gold surprises to upside this year. I think around 1800. PZG finds some more reserves and the stock gets bought out at 5 or $800 million. Acquirer gets 2 nice properties...solid au resources and bonus silver resources. Just an educated guess. One key...Crupi has got to keep the share count down.with this deal... Crupi gets 20 million and Friedberg gets $120 million.
I have 77K shares and all you hear is complaining about instant gains or other stocks does anyone realize this is a gold play? I am in agreement with you on this long term position.
Ok...so somebody has $800 worth of this stock. A number of people said this is this worst stock ever implying there is never any performance. If you look at the long time charts, the stock went up from below $1 to $4 in 2011. Has slid from $2ish to down to $.87 since April 2013, but so have the majority of miners. It's not like PZG has never gone up. They certainly have resources. Sleeper and Mexico are worth money. There not wasting huge amounts of investor money. The ceo have 4 million. A big investor has 24 million. It's in a very persistant down trend for sure, but the fundamentals are good. I guess this stock is only for patient investors. If you have any belief in this company and its holding, this is the time to buy when you are absolutely fed up. It's not going to zero because it has real assets. Somebody could buy this stock for under 140 million and own 2 big potential mines??? I never dreamed it would go this low, but hard to believe that we are looking at a stock under 70 cents. And, any positives and we're back near the $2 range fast.
There's no reason for this stock to rally. Dead as a door #$%$. I only have $800 or so left in the position, so I might as well hold on and pray this thing turns around somehow. Worst case, I lose the last of the $800.
I really learned the lesson the hard way. I listened to a friend who did "research" on this and loved it...
So, here's what keeps me going. The billionaire Friedberg who took Arizona Star from $2 to $18 owns 24 million shares according to a press release this year. Crupi owns 4 million shares. That's 28 million in 2 guys who want to see this work badly. If these guys are holding, I am still in for that reason. This miners are going to recover (since they have income) before those looking for gold like PZG. PZG will do well when (a) PZG increases the assets (b) gold goes way up (c) M&A returns and the confidence in the price leads to companies wanting to add to reserves. Could happen fast if gold moves up strongly and stays level.
Heavy manipulated stock. Same bunch been doing it for years. The only way to counter it is by PZG coming out with very positive news and more than just assey results, since that doesn't ranslate into cash, just maybe future revenue but that's been going on for years also.
I would be ecstatic with $4 per share...
Garbage stock. I might as well ride it to 0. No point in selling now. Position worth less than $1000.