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PEN 30.5¢

A new dawn for PEN

  1. Zubana

    1,246 Posts.
    Buying shares in a penny stock company at the bottom of a commodity cycle has created more millionaires than anything else in the world.
    Legendary pundits like Rick Rule talk about this all the time.

    Consider the elements:
    - resource
    - team
    - funding support
    - market dynamic

    Yesterdays announcement took care of item 3 on that list, underlining the levels of both institutional and retail support. Whilst I was unable to participate personally due to financial constraint, I can put my hand on my heart and tell you I would have been all in with the opportunity to do so.

    I don’t think most us quite appreciate the task that PEN HQ has just undertaken to deliver the funding. Consider the complexity of a multiparty arrangement such as we have now, carefully measured to ensure that no single interest threatens the others (including us). I have little doubt this has taken a significant amount of thought, time and effort to put in place, and despite all that is said about HQ and missed timelines, often enough from my own writing, we would be remiss not to tip our hats to the PEN HQ team and say “well done”, now let’s take the next step into the future.

    Another standout feature of the funding to me is having the 4 large instos coexisting within a single funding arrangement – think about that for a moment!
    Greedy bastards that they are, willing to stand in line, share the company and take a cut at some point in the future. Let’s make no mistake, they are not here unless the expectation is that cut will delivery handsome rewards in the medium term. So, I have to come back to how that was put in place…..perhaps a nod to Gus and the team for orchestrating what can only be described as a notable achievement under current market circumstances. This is surely going to make waves in the U industry and draw a lot of attention – PEN comes to production where others are on care and maintenance. Significant!

    Let’s say the market dynamics shifted suddenly….back to a place where U is in demand and everyone wants a piece of producers, developers and speculators. What price is a PEN share in that environment now? Wind back to market dynamics today and perhaps we’re at a point where you will never again see such value until the U market completes another cycle, perhaps in 15-25yrs time.

    Although I’m a fundamentalist, I recognise the tenuous relationship between the kind of value we calculate and perceived value based on future performance.
    I think we are about to go down the road more aligned with future value now and I expect exciting things for the SP this year with Ross production, Karoo updates etc.

    Let’s continue to be critical and analytical, it serves the interests of all.

    Let’s also have the wisdom and courage to invest in rare opportunities such as we have now and ride them through, this is what really changes lives.
    Most investors will tell you, you only really need one of those in your life to deliver the desired outcome.

    Looking forward to the next 12 months!

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