Penny Stock Pick - PMU

More Red Hot Gold The penny stock on the spotlight today is another gold mining company Pacific Rim Mining Corp. (PMU), the Vancouver, Canada based gold and silver mining company which owns gold mine in El Salvador. As the gold price surpassed $700 per ounce, this is probably a good time to look at another gold mining stock.

Technical
The technical chart looks like the stock may be about to begin a long term bull market as there is possibility that 50 day moving average may cross on top over 200 day moving average with MACd showing buy signal as MACD is on top of signal line. In addition KD also shows buy signal as K line is on top over D line.

Insider
The is no insider transaction for the company.

Financial
The financials of the company looks ok as the company has reduced net loss from $6.8 million in 2004 down to $4.6 million in 2005 on cost cutting effort despite slightly drop in revenue. However since the cash level is approaching three year low, the company may need to raise cash either by financing or selling of stock.

Penny Stock Score (1~5) 5 is highest
1. Market Potential(gold mining): 5
2. Technical: 4
3. Financial: 3
Recommendation: Buy