‘Turnaround Story’ at North American Palladium?

Writing for Seeking Alpha, David White suggested that North American Palladium (TSX:PDL) could be set to turn a corner soon. The author cited rising palladium prices as well as PAL’s decision to sell its money-losing gold mine as supporting factors. Though he admits lower than expected profits have created a “significant credibility problem,” for the company, White suggests that the trend seems ready for change.

As quoted in the publication:

I wouldn’t put too much money into PAL; but PAL stock could easily reach $1 or more in the next year. If it did that it would be more than a seven-fold increase from the closing stock price of $0.14 per share on November 21, 2014. Some point to PAL’s lack of ready cash; but PAL’s management says it expects more of its $60 million credit line to become available in Q4 as it proves its production has increased. Plus it will get more money from sales during Q4 2014. I find management’s argument very compelling. As long as there are no disasters in the near term, PAL would seem to have turned the corner. It is a buy.

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