Originally Posted by
Merc
We have a water tank with a one inch clear pipe up the side of it acting as a gauge. When it rains the level in the pipe slowly rises. When, in severe dry weather, we buy a tank load the gauge runs wild under the sudden influx of water. UP DOWN, Up Down, up down until it finally settles at the correct level.
PEB is like a very, very large water tank that is quite empty but currently being filled with random truck loads of water. In the last week the gauge hasn't had a chance to settle between the trucks but sometime soon it will. Between truck loads the rain will fall and the tank will steadily fill. As the water level rises the share price will steadily increase.
Like a water tank there is always the chance of a sudden leak - or a burst pipe when a cow stands on it - but so far the tank appears to be extremely well built and the cows are in a different paddock.
Where will this share price settle in the short term? My guess would be somewhere in the range it is now or a bit higher. But all the articles in the news may well act like mini-tankers that push it up a bit as more people want to buy in. It is the old story of supply and demand. The scarcer the product and the more who want them the more they will cost.
The long term view is that it is a the very, very large tank that may fill surprising quickly with steady rain.
$2 minimum by Christmas (or within weeks?) and who only knows what - but very large - in 5 years?
DISC: Long term holder and wish the cash flow situation was better to be able to buy more!