The $50k Challenge – Update 16

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

Risks

  • 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.

Please remember all content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision