Fundamental Analysis of Petaquila There seems to be a lot of negative comment on Petaquila and perhaps some of it is justified. However I have been accumulating the stock for the following reasons:
A very good buy rating on ITRADE of 1.0 for a mining rating of 9 out of 155.
A buy rating by Jacob Securities on Jan. 23,2012. (see www.baystreet.ca )
Normal Course Issuer Bid by Petaquilla on June 29,2011 because the company felt that the 0.65 price on that date did not reflect the true value of the company. The company has since bought back approx.half a million shares in a price range of 0.56 to 0.90. ( see www.canadianinsider.com )
Vectorvest also shows the stock is badly undervalued with future earnings of 0.20 and rising for a projected P/E of 3.10. Present P/E is 7.25 so the stock is quite cheap going forward. Earnings should be increasing as they ramp up production with rising precious metal prices being an additional bonus.
I recently talked to company personnel who confirmed the growth profile. They also confirmed that they would be spinning off their construction company with an announcement next month. Whether this happens we will just have to wait.
Right now it is hard for the stock to break through the 0.63 level where there seems to be large sell orders for the last couple of weeks.Once this resistance level clears the stock could move up.