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Buy Paternoster Resources at 0.325p says Doc Holiday

Wednesday 3 April 2013

Paternoster (LSE:PRS) has had a variable 12-15 months. The shares traded at a premium to Net Asset Value (NAV) back in early 2012. Now the stock trades at a deep and, in my view unwarranted, discount to NAV. And with further Investment disclosure and Accounts pending release which will, I believe, will demonstrate a highly profitable and positive position, a closing of that discount to a rising NAV should reward purchasers of the stock

The Current disclosed Investments as they stand and the +/- position are:

Listed

Brady Exploration £161,000 -17%

Quadrise Fuels £218,000 estimate +56%

Plutus Resources £720,000 +260%

Astar Minerals £110,000 -63%

Unlisted

Andiamo Exploration £200,000

Shumba Coal £160,000

Bison Energy £200,000 estimate (Speculated)

 

Warrants Held

Leed Resources 166,666,667 exercise @ 0.15p

The company appointed Nick Lee as Ceo some time ago and re-branded the company as a Micro Inv. Fund as he completed an early coup with Leed Resources (LSE:LDP). What is now clear to all is that the company has made great leaps forward after the huge surge in cash profits it generated from the Leed trade in early 2012. One full year on and Paternoster now have around three times more cash than it did twelve months ago, meaning that, unlike many AIM stocks, it will not be passing the hat around soon. It also sits on a healthy and diverse Investment portfolio.
Core Value


TOTAL INVESTMENTS
£1,770,000 (Unrealized profit £390,000 +28.1%)

Probably outperforming most indexes and benchmarks
CASH circa £1,300,000 – 1,400,000


TOTAL PORTFOLIO £3,170,000

Shares in issue 577,857,956

Net Asset Value 0.55p

Share Price 0.325p

Discount 41%

The recommendation is buy.

Doc Holiday is a seeker of value among small caps. You can follow him on twitter at https://twitter.com/DDS_Doc_Holiday or see more of his work on his own blog at http://docslaymanschatter.blogspot.com/

 

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