Hi old friend, I value the two companies, merged into one , north of $270M PNX have been issuing new shares to retire old debt.(My interpretation) There is some chance the share price could fall to $0.004 Buying PNX at $0.004 would be the same as buying KIN at 5.2c (ratio 1:13) MC of PNX @ 0.004 = about $24M MC of KIN @ 5.2c = $61M
TOTAL MC Combined would be $85M
Cash and cash equivalents of the two companies is about $90M, which I value at $90M.
Conclusion buying PNX at $0.004 is like buying a dollar for 94c. Plus you get the value of all their projects.
There is no chance of a takeover as 50% of both companies are owned by the same group.
Broker involvement is zero , hence broker coverage is non existent.
Sometimes the Market takes a long time to find the intrinsic value of a stock.
KIN currently has $66M in the bank probably earning 5% in 3 month term deposits. Earning $63,000 interest a week.
Cheers Old fella
PNX Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
