A loss of 14M on revenue of 36.5M does sound scary. However, if you read into it, it's mostly due to increased amortization. Cash flow is up, debt is down. I wonder how much of this was already priced in. Yesterday SWC was killed, let's see what today's PAL will drag in.
My opinion is to think of PAL as a long term call on palladium. In the attached article by Sol Palha he shows a chart of palladium with a 2 year long consolidation channel. Once Pd breaks out of this channel (to the upside of course) then PAL should start to move. At that time it won't matter much what management does, there just aren't many options for playing the palladium market. Case in point is CDE. Questionable management, yet when silver moves even that dog moves. JMHO
Unfortunately for shareholders of PAL the Canadian dollar has appreciated about 8% against the US$ just since October 1st, 2007. Since Pd prices have not done the same, the terms of trade are working against PAL. Q4 will be worse than Q3 and cash flow is likely to be negative in this quarter, vs the paltry $4 million in Q3. This company will certainly need new equity capital in the not too distant future to keep all the balls in the air (Offset zone, Shebandown, Finnland) Look for dilution.