PYD business strategyIf I am correct, PYD (with all their assets producing) projects to make around $11mil annually. Lets assume they make $10 mil. From this information we can roughly estimate EPS and SP going forward.
Take $10mil divide by shares outstanding 350mil (not sure the exact count). That gives us 0.028 eps
then use x10 multiple and it gives .285 SP. Not so bad from 7 cents. I definitely think PYD is worth a gamble at 7 cents as it offers a potential 300% upside from here.
Also, I like this business style because they actually use the $ to purchase producing assets. Unlike resource companies where they raise tens of millions of $ and use that to drill holes, define deposits, then spend tons of cash for permits, feasibility / environmental / bankable studies, and all kind of expenses that in the end MAY or MAY NOT be profitable. In this case, PYD avoids all that resource nightmare and is already producing $$$. How much ? That we shall see by Q4.
Once they start making some cash, then they can use that to secure debt financing and grow from withing. Stop shareholder dilution. Sounds like a good plan to me. Hope it works out for them.
Opinions welcome.