Is it a good company at a reasonable price? This is a high speculative stock. I purchased it with my fooling around money. You should never invest with money you cannot afford to lose. The price seems low compared to what analysts think it might do. But who knows what the future hold. Buying such stock certainly makes investing interesting. The current price maybe low.
I do not own this stock of Trigon Metals Inc (TSX-TM, OTC-PNTZF). I originally brought this stock in 2000 as Tathacus Resources Ltd. because it was doing interesting things. It was part of a basket of small caps that I was buying at that time. There was a reverse takeover (RTO) of this company on April 28, 2011 by Pan Terra Industries Inc. Symbol PNT. On May 2, 2012 there was a name change from Pan Terra Industries (PNT) to Kombat Copper Inc. (KBT). September 2016 there was a name change to Trigon Metals Inc.
I sold this stock in April 2024 because they were going to spin off a mine and the stock price fell. However, recently I bought some stock because it has started to earn revenue and analyst expect revenue to go some 380% this year. It probably will not go up that much, but it is up over 100% for the 12 months ending in the first quarter of 2025 which is June 2024. I bought this with my fooling around money.
When I was updating my spreadsheet, I noticed this this company Trigon Metals Inc consolidated their shares. This stock has a financial period ending at March 31 each year, so I have looking at the year ending March 31, 2024.
Analysts seem to think that this stock is going to take off. They had no revenue 3 years ago. They got Revenue in 2023. In 2024 revenue increased by 910% and it expected to increase by 383% in 2024. For the first quarter of 2024, Revenue has increased by 104%. Perhaps I made a mistake in selling earlier. Time will tell.
This company is really bad about putting up financial reports. They only seem to put up some at a time.
If you had invested in this company in December 2013, for $1,000.00 you would have bought 1,000 shares at $1.00 per share. In December 2023, after 10 years you would have received $0 in dividends. The stock would be worth $1,180.00. Your total return would have been $1,180.00. This would be a total return of 1.67% per year with 1.67% from capital gain and 0% from dividends. This calculation takes into consideration stock consolidation, which means that the original cost would be increased by these consolidations.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $1.00 | $1,000.00 | 1,000 | 10 | $0.00 | $1,180.00 | $1,180.00 |
This stock has no dividends, so dividend yield and Dividend Payout Ratios (DPR) do not apply.
Debt Ratios are not good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.70 and currently at 0.61. The Liquidity Ratio for 2024 is very low at 0.32 and currently at 0.29. There is not much cash flow for 2024, but with cash flow currently, the Liquidity Ratio is just over 1.00 at 1.04. The Debt Ratio for 2024 is low at 0.90 and 0.87 currently. It is below 1.00 because the book value is negative. The Leverage and Debt/Equity Ratios for 2024 negative because of a negative book value.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.70 | 0.61 |
| Intang/GW | 0.00 | 0.00 |
| Liquidity | 0.32 | 0.29 |
| Liq. + CF | 0.07 | 1.04 |
| Debt Ratio | 0.90 | 0.87 |
| Leverage | -9.32 | -6.54 |
| D/E Ratio | -10.32 | -7.54 |
The Total Return per year is shown below for years of 5 to 11 to the end of 2023. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2018 | 5 | 0.00% | 81.45% | 81.45% | 0.00% |
| 2013 | 10 | 0.00% | 1.67% | 1.67% | 0.00% |
| 2012 | 11 | 0.00% | -3.26% | -3.26% | 0.00% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are all negative because this company has no earnings. So, there can be no P/E Ratio testing.
There can be no Graham Price testing as you need both positive earnings and positive book value. The book value has often been positive, but the EPS has not. I cannot do any testing here either.
I get a 10-year median Price/Book Value per Share Ratio of 7.05. This is a rather high number. Unfortunately, the current book value is negative. So, I can do not testing here either.
I get a 10-year median Price/Cash Flow per Share Ratio that is negative and therefore cannot be used in testing. The current Cash Flow is positive and there is a P/CF Ratio is 3.51. It is a positive sign to see a positive cash flow.
There are no dividends and there never was, so I can do no dividend yield testing.
The 10-year median Price/Sales (Revenue) Ratio is 18.40 based on Revenue for the last 2 years. The company only started to have revenue in for the financial period ending in March 2023. The last 12 months ending June 2024 has a Revenue of $19,571M and a P/S Ratio of 2.12. Analysts expect the Revenue for March 2025 to be $46,350M and a P/S Ratio of 0.87. A good P/S Ratio for non-earning small caps is 1.00 or lower. So, the Ratio of 0.87 is good.
Results of stock price testing is that the stock price is that it might be at a good price based on P/S Ratio. It is the only testing I can do.
When I look at analysts’ recommendations, I find Strong Buy (1), Buy (1). The consensus would be a Strong Buy. The 12 month stock price consensus would be $3.22 ($2.388 US$) with a high of $3.71 ($2.752 US$) and a low of $2.98 ($2.205 US$). The consensus price of $3.22 implies a total return of 219.94% all from capital gains.
There are no reviews on Stock Chase or Motley Fool. The company put out a press release on Business Wire about their 2024 fourth quarter. The company put out a press release on Business Wire about their first quarter of 2025.
Simply Wall Street via Yahoo Finance does a review of this stock. They really like this stock. Simply Wall Street via Yahoo Finance had an earlier review in August 2024. Simply Wall Street gives this stock 3 and one half stars out of 5. Simply Wall Street has 4 warnings out on this stock of negative equity; stock price volatility over the last 3 months; significant non-recurring items impacting financial results; and shareholders have been diluted over the past year.
Trigon Metals Inc is an emerging copper and silver producer in the African continent. Trigon operates through the development of its Namibian mining and exploration permits. The company's projects include Kombat Mine and Gross Otavi in Namibia and the newly Silver Hill copper-silver exploration project in Morocco. Its web site is here Trigon Metals Inc.
The last stock I wrote about was about was Dollarama Inc (TSX-DOL, OTC-DLMAF) ... learn more. The next stock I will write about will be Keyera Corp (TSX-KEY, OTC-KEYUF) ... learn more on Monday, October 28, 2024 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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