Does anyone know what the criteria is for entry into S&P 200? KZL was admitted during the September quarterly rebalance and this has done their share price no harm at all as more fund money flowed in. Not sure what criteria KZL met to be admitted. When you stack up PEM against KZL, PEM have more or less the same amount of shares (~200 million) and close to double the revenue and profit.
With the depletion rate of zinc supply and the clouds lifting a bit on the global economy I see a great run up to Xmas for PEM. I'm looking for at least $5 a share as the market finally recognises the value, pure earnings power and emerging growth prospects.
I have to say I am also very impressed with the quality of management too - Len Jubber may be in the right place at the right time but from reading the impressive reports and presentations over the past year he is no slouch and is really on top of his game.
As zinc supply falls and zinc price increases, PEM should sail along with it. Needless to say, I have been suitably impressed with Perilya this past year and would love to see them enter the ASX 200 in the next 6 months provided they don't get taken out. Stock Resource recommended them a Sell at $2.25 in March this year and I am certainly glad that I have kept the faith.
One word of warning...Commodities guru Jim Rogers said recently that he is 'relatively' bearish on zinc & copper (http://www.forbes.com/forbes/2006/1030/044.html). I wonder what Jim Rogers knows that we don't.
DYOR
PEM Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
