Again that is one shareholder dumping stock quickly for whatever reason that might have nothing to do with the prospects of the business. I believe PEM is currently in the S&P300 index which will be reweighted next month and PEM might be removed from that index due to its current lower market cap. meaning index funds will have to sell their shares - these funds will have already worked out which companies are being removed and will be selling in advance.This could be one reason.So maybe an opportunity to pick up some cheap stock. On my calculations PEM could earn $70mil in 2013 with Broken Hill operations earning $35mil pre-tax with no tax payable and Dominican Republic earnings of $35mil after tax - if so then it's trading on a PE of 3.5 - one has to ask themselves is that a reasonable PE for this business with all things considered. Zinc up 2% tonight - another $3mil in profit per annum!
PEM Price at posting:
29.5¢ Sentiment: LT Buy Disclosure: Held
