RE: Smallcap Materials Pick"PLM has "Proven and Probable Reserves" valued at nearly $4.5 billion and "Measured and Indicated Resources" valued at nearly $9.0 billion, but trades at a $400 million marketcap. From several different angles, we believe PLM has anywhere from a 3-22 times upside in the long-term, yet the risks of final permitting and lack of Wall Street awareness has the stock trading at extremely low valuations.
We see three major catalysts in 2008 that could double or triple the stock if the news remains positive. The first is the delayed publication of the final Environmental Impact Statement [EIS] from the State of Minnesota which is expected by the end of 1Q08. The second is another boost in reserves, also expected by the end of 1Q08. The third is final permitting which could happen as early as 4Q08.
Positive news on these three fronts should move the stock sequentially higher from current support levels culminating with a potential move to $6-9 per share (+106-209%) upon the completion of the permitting process by the end of 2008. Beyond that, it's all about production and reserve valuations. We believe PLM could then become a very attractive acquisition target for mining conglomerates globally, and at a huge premium to current valuations"