The $50k Challenge Update 16 – 24/11/2020
Stock Code: PF1
Shares Purchased: 162,163
Share Price: 0.185
Reasons for buying
- Incredibly low EV of only $4.7m
- $6m cash so no credit raisings required in the foreseeable future
- Management team continue to purchase shares on Market
- Major shareholders also increasing their stake since listing by purchasing shares on Market
- PF1 owns a high potential Gold project in Argentina close to competitors who have market caps of over $100m
- Copper and Nickel acquisition review underway
- PF1 also own an advanced Iron ore project which they are looking to divest. In the current market with Iron Ore prices increasing substantially in 2020, this could lead to a big cash injection if the project can be sold
- Top 20 holders would own close to 50% of the register
- With all resource explores, favorable drilling results can never be guaranteed. This is currently being offset with the low enterprise value and cash on hand.
To ensure complete transparency, I own a substantial amount of shares in PF1 in my own personal non public portfolio with various entries between 18.5c – 20c.
To find out more about how I analyse stocks that fit the criteria of the $50k Challenge check out my Penny Stock Investing course.
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