Friday, October 9, 2020

Trigon Metals Inc

Sound bite for Twitter and StockTwits is: Materials Sector Stock. See my spreadsheet on Trigon Metals Inc.

I 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.

When I was updating my spreadsheet, I noticed that they have been selling shares by private placement. Outstanding shares have grown by 44% per year over the past 5 years. This stock still has no revenue, earnings, or cash flow. Any green on my spreadsheet just shows the results that are less bad, not that they are good.

This stock does not pay a dividend.

Debt Ratios are currently good. The Long Term Debt/Market Cap Ratio is low at just 0.05. The Liquidity Ratio is good at 2.68. The Debt Ratio is good at 3.09 and this is a good improvement on the last few years when the Debt Ratio was below 1.00. The Leverage and Debt/Equity Ratios are also currently goo at 1.48 and 0.48. The debt ratios have varied a lot over time.

The Total Return per year is shown below for years of 5 to 22 to the end of 2019. 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.
2014 5 0.00% -21.99% -21.99% 0.00%
2009 10 0.00% -12.60% -12.60% 0.00%
2004 15 0.00% -26.24% -26.24% 0.00%
1999 20 0.00% -26.56% -26.56% 0.00%
1997 22 0.00% -15.29% -15.29% 0.00%

The 5 year low, median, and high median Price/Earnings per Share Ratios are negative. The corresponding 10 year ratios are negative. The corresponding historical ratios are negative. The current P/E Ratio is negative. So, there is no way a test can be done for this stock.

I estimate a Graham Price of $0.07. The estimated 10 year low, median, and high median Price/Graham Price Ratios are 6.12, 6.72 and 10.60. The current P/GP Ratio is 5.67 based on a stock price of $0.33. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 4.80. The current P/B Ratio is 19.57 based on a Book Value of $1,710M, Book Value per Share of $0.02 and a stock price of $0.33. The current ratio is 308% higher than the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Cash Flow per Share Ratio that is negative. The current P/FC Ratio is negative. This test cannot be done. There is not dividend and there is no revenue, so these tests cannot be done.

Results of stock price testing is that the stock price is anyone’s guess. The P/GP Ratio test says cheap and the P/B Ratio test says expensive. The P/GP Ratio is just an estimate but the book value has been going down by 23% per year over the past 5 years.

Is it a good company at a reasonable price? I do not sell this because it is worth less than $10. There has been two consolidations and I have ended up with just 6 shares from an initial 300 shares. I still track this stock because I am interested in how everything will turn out.

When I look at analysts’ recommendations, I find no analyst following this stock. This is hardly surprising.

There are no entries on Stock Chase, but this is not a surprise as this is a penny mining stock. There is an executive overview on Simply Wall Street. It is given two stars out of five. An announcement on Junior Mining talks about Eric Sprott buying shares through a private placement. A writer on Simply Wall Street talks about insider buying at this company. A writer on Simply Wall Street talks about who owns shares in this company.

Trigon Metals Inc together with its subsidiaries engages in the acquisition, exploration, development, and maintenance of mines and mineral properties in the African country of Namibia. Its web site is here Trigon Metals Inc.

The last stock I wrote about was about was Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more. The next stock I will write about will be Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Tuesday, October 13, 2020 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. 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.

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

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