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H.J. Huneycutt » Comments » AAUKY.PK

  • Survival of the Fittest: Save Haven Investments [View article]
    Another question:

    Why do you think Norilsk is in desperate need for cash? Their most recent financial statement does not seem to suggest that:

    www.nornik.ru/_upload/...

    Debt-to-value ratio is around 36%. They made about $4 billion in cash flows from operations for their most recent reported quarter (ending June 30). They also had about $5 billion in cash on their balance sheet.

    I'm sure they are hurting right now as prices have plunged, but they wouldn't necessarily appear to be in any worser shape than anyone else from a shallow glance at their financial statements.
    Oct 22 11:59 am |Rating: 0 0 |Link to Comment
  • Survival of the Fittest: Save Haven Investments [View article]
    Mark,

    Why do you think PAL decided to suspend operations at the Lac des Iles mine rather as opposed to refusing to sell off their production and stockpiling palladium? They are in great financial shape so theoretically, it shouldn't be that difficult to continue operating, even if at a loss.

    Also, out of curiosity, what do you think about CDE right now? The company looks to be in poor shape and the stock is selling for next to nothing, but the equity interest in their assets is worth over $3 per share. Do you think one of the larger mining outfits might try to buy them out?
    Oct 22 11:25 am |Rating: 0 0 |Link to Comment
  • Are Safe Haven Investments Really Immune From Current Crisis? [View article]
    DaveW,

    I think you're basically right that Mark does not analyze demand side destruction fully and PAL was definitely a bad buy at $5 (I bought in to). However, at $1.20 or so, the company's equity in their assets is significantly greater than the stock price. Plus, they don't actually have much debt so they don't seem to be in any imminent danger of bankruptcy for the moment. If the stock did indeed go up to $6 in 5 years, you would be making a 400% return, or roughly 80% for each year you held onto it.
    Oct 16 12:56 pm |Rating: +1 0 |Link to Comment
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