TSE:PTM Platinum Group Metals

Started looking in this one, as a friend of mine has bought in yesterday, thinks is really undervalued... i am starting to take a look at,,, tell me what you's think.

The 15 min analysis:

Based on 200M shares outstanding (increased significantly according to note on subsequent events), Cash per share of $0.01 (may have increased with the 70M shares issued subsequent to the reporting date at $2.02 per share), Book value per share of $0.45, Total Debt of $0.18 per share, Current assets to curren liabilities of 2x (1x if you exclude assets held for sale on the grounds that they are not liquid enough to be considered current [not sure on this point without further analysis).

Earnings per share has gone from negative to positive for the first time in years, but the $26M in net income, includes a one time $45M WBJV reorganization (whatever that means, seems to be related to some sort of tax misstatement). That means that nothing has really changed in their operations, and in fact, they are doing worse than previous years.

The purchase price of $2.02 per share in the bought deal financing provides significant incentive for a pump and dump so whoever bought the shares can unload them now that the price has risen a little bit. This higher it goes, the more likely this will be the case.

At current price of $2.40, and no further information, I would pass. However, there is a lot of information in the financial statements, so if you are interested, it would be worthwhile to dig through and see what you can find.