I think its impossible to say how low a stock could go. The market is pushed by sentiment, value has little meaning short term. The reality is that stock prices can for short periods of time go very low - the GFC taught us all this lesson. It makes the margin of safety concept somewhat redundant IMO.
As far as value with PNA, i believe it lies somewhere in the 2.50-2.70 range, based on the NPV of PK and BH over the next 9 years (conservative), using a poc of $3.80lb, pog of $1800oz, pos $20oz, WACC 10%.
In this price range you are buying the FCF from PK and BH and picking up the growth profile for very little.
I have been waiting a long time for another buy opportunity on PNA. I still think its the standout mid cap miner. Like the Cu/Au mix myself more than other metals.
PNA Price at posting:
$2.93 Sentiment: LT Buy Disclosure: Held
