Nikolay Tomov
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Pacific Wildcat Resources Corp. Stock (CVE:PAW) Knows No Boundaries

by Nikolay Tomov Mar 30, 2011
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"It is too good to be true." Certainly, this is what managers of Pacific Wildcat Resources Corp. (CVE:PAW) might say today about the performance of the shares on the markets. It seems the stock knows no boundaries these days. Triggered by a new announcement, PAW surpassed all expectations on the Canadian Exchange (CVE).

Pacific_-_Chart_-_30_Mar_2011.pngThe shares started the week in a strikingly powerful way. On Monday, the stock jumped more than 48% up on the CVE, on a volume of over 1.4M shares. This made PAW the second best percentage price gainer on the TSX Venture Exchange.

Yesterday's session was full of records, though the advance in price was much more modest - just 5%. PAW managed to break "only" two records - noting an all-time high of $1.83 during the session and setting a new trading volume record of 3.8M shares. This turnover beats almost 19 times the usual for the last thirty days turnover.

Pacific Wildcat is a rare-earth producer and explorer concentrated on the development of several tantalum and niobium projects located in Kenya and Mozambique. Last Monday, the company festively announced to have encountered "significant rare-earth mineralization" on its Kenyan Mirma Hill niobium property.

The assay results indicated 30 meters at 8.85% TREO (Total Rare Earth Oxides) in one of the drilled holes. The news obviously caught investor's eyes and immediately set the shares on fire. For how long the surge will continue, however, is a different story.

There are other positive developments that could come in support of the shares. Earlier this month, Pacific commenced the operation of its Tantalum plant on the Muiane project in Mozambique. In late February, the company completed a brokered private placement for gross proceeds of $3.4M, which strengthened the corporation financially.

Pacific_-_Logo.pngAt the same time, some negative factors also exist - they could badly influence the share performance too. Financial statements reveal that net tangible worth of Pacific is $8.6M, while the current market cap of the company is over $185M. It shows traders have greatly overvalued the corporation and the shares are probably priced too high.

Besides, Pacific has no revenue as yet and has reported a net loss of $448K for the third quarter of 2010. Moreover, the company is securing funds through equity financing, which has greatly risen the stock dilution. Within one year, the weighted average number of common shares has jumped by 56% - from 45.2M to 70.8M in the end of last September.

Please, read more really intriguing details about Pacific Wildcat and the advantages of tantalum in the latest company presentation.

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