New article, POLY suspended.....27 Mar 2022 22:24
EASY, it hasn't been suspended.....just a little click bait to get your heart racing.
Nice balanced article posted today.
https://seekingalpha.com/article/4498026-polymetal-buy-reminiscent-of-call-option-with-no-expiry-date
"We can however highlight a number of data points which suggest that this is an appropriate range to consider, and help you determine the respective probabilities of various outcomes:
The Company’s stock price fluctuated between £ 10-12 per share directly prior to the crisis in Ukraine.
Our DCF model Polymetal_03.2022.xlsx, which attempts to incorporate the negative impact of the current situation, indicates a fair value (FV) of £ 4.5 per share using a hurdle rate of 12%, and a FV of £ 10.4 per share using a hurdle rate of 8%."
"Conclusion
A prospective investment in Polymetal is not for the faint-hearted. Most investors would perhaps rightly decline the opportunity based on the single fact that there is a certain possibility, or probability, of a total capital impairment. Having said that, should that scenario not come to pass, then there is a high likelihood that the current share price is grossly undervalued. According to our estimates, the probability-weighted magnitude of that undervaluation is over 5x. As such, the current situation surrounding Polymetal’s stock reminds us of a call option with no expiry date.
Clearly, this is most definitely not the kind of investment opportunity on which you want to bet the farm. On the contrary, strict discipline regarding maximum risk budget is required for current and prospective investors. For us at Oyat, having started buying shares in the Company prior to the current crisis, we have since continued to accumulate shares at depressed prices to our max. risk budget (approx. 2.5% of total assets) for this position"
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