Insiders double down on Pan African Ressources

This is a long term play, this South African gold mine will double in 1 or 2 years. I know gold is in turmoil with yields forecast to increase, but this is priced in, it's the reason for the 35% drop. Stock market is euphoric, it is time to invest in value and hedge against inflation with gold mines.

• CEO and Financial director already bought £1,2 million in November (at £0,25), they persist with £0,3 million on 31 March (at £0,16). Keep in mind they earn £1,6 million per year so this is 1 year of gross salary for them. Top executive buying is always a green flag.
  
• Waiting for a lot of announcements that will be a catalyst this year (see last post about PAF).
  
• Technically just above 2 resistance lines, it can't drop further and FED raising rates to 2.2 % this year is priced in.
  
• PAF is shielded against the valuation bubble due to a PER of 7,5. Raised rates will have no effect on them since they repaid a lot of their debt (Debt to equity from 57% to 37% in a year).
  
• South Africa being far from USA, Russia, China, and Middle East, it is shielded from war risks.
  

Target £0,30 within a year or 2. If gold surge I expect the stock to replicate gold's surge with a 3x or 4x leverage and will adjust my target.

评论:

Target around £0.24 on the chart is due to a resistance. Good idea to sell here and re-buy above if it breaks it, or re-buy below (probably £0.2) if it's rejected