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North American Palladium Ltd. Message Board

  • lvlarry_75 lvlarry_75 Apr 29, 2013 1:42 PM Flag

    Consolidation...

    I feel that PAL is getting ready to break out of this brief consolidation period we have been in lately. I think this may run up into earnings next week.IMO.

    I think the new CEO is trying to reduce PAL volatility, to only during earnings season. No prelims or press releases, have certainly reduced volatility the last month or so. Its almost more interesting following GIS. This might shake out the some of the day trading. Whether this is a good thing or a bad thing only time will tell. I think he has a strategy to streamline their mining operation, for they are now hiring an electrical engineer. Electricity is certainly a huge cost factor with switching to shaft mining from ramp mining. Hopefully they can find a qualified engineer who knows energy management as well as being able to solve problems, should they arise, quickly, thus eliminating costly down time. For he/she will be working directly with the electricians.

    I think PAL may surprise for a change, and not in a negative way. There are still many naysayers following this stock, and rightly so, based on their past performance. But the past is the past and the suprises will be to the upside now, IMO.

    Sentiment: Strong Buy

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    • Palladium up big time today and Pal down again...Will this piece of junk ever do anything?????

      Sentiment: Hold

    • You are putting way,way too much importance to hiring an EE. PAL loses and hires people all the time. There are 4 major uses of electricity at PAL
      - mill (incredible how much power the mill uses)
      - hoist (when done)
      - ventilation
      - lighting

      The first is by far the biggest. There is not much that can be done on any of them, they are all uncomplicated. Energy mgt of a 50 story office building is way more complicated. Any changes would be operational (like only running mill 1/2 time) rather than "electrical". Electrical use will go up when hosting starts but will more than offset by lower fuel and labor costs as ramping tapers off.

      As for streamlining the operations, they have done most of that by divesting gold division.

      A good mining operations engineer is much more important - juggling development with production, optimizing ramp use, overall mining plan, choosing stopes and locating loading pockets and crushers. And most important putting the shaft contract drillers feet to the fire.

      IMO there is a 50/50 chance they will sell out. Their choices are really limited and all are unpleasant.

    • Hope you are right about the up-side beat. I also think that's a fair possibility.

      I'm not sure whether we'll get the run up prior to that, though. Volume has been slacking.

      A thought crossed my mind that hedge funds may have been toying with PAL as a levered derivative component in early April, but quickly abandoned that strategy when PAL didn't offer the needed upside correlation to Pd. Just a hunch.

      I also expect some investors are waiting for the funding shoe to drop before re-entering or adding to PAL. That might be a decent strategy, provided SA doesn't ignite before then.

      We should know about Q1 soon enough. I expect they will release results early next week, if not sooner, given that the annual meeting is a week from Thurs.

 
PAL
0.2559-0.0041(-1.58%)Aug 21 4:00 PMEDT

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