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By Ekaterina Zelenkova
Jun 28, 2011

Is Portage Resources Inc. (NDA) (PINK:POTG) Stock Overestimated?

POTG_price chart.jpgWhile Peru stocks are declining, shares of Portage Resources Inc. (NDA) (PINK:POTG) exploded again, hinting the next new 52 week high.

Although, as of yesterday, the company plans only to acquire a mining property in Peru its shares were once again appreciated highly by investors.

At the end of the trading day, the market cap of POTG was higher than this of some mining industry small caps, operating in Peru.

Maybe, these days, investors eventually will make some comparisons of POTG with similar companies in the branch and may reconsider the fair value of shares.

Yesterday, Portage Resources Inc. released that signed a definitive agreement with the company named Airon Peru S.A.C. for the acquisition of the Wukakuy Properties in Peru.

Though this news were not brand new, since aforementioned deal was announced by the company in mid June, its shares banged 33.09% between trading sessions, to close at $0.74. The new value added of POTG was “explored” in a trading volume, which exceeded seven times the daily average for the company.

POTG_from the site.pngAt the end of the day, the market value of Portage Resources Inc. skyrocketed to $471.53 million. Maybe, for some investor this amount looks enormous, considering the company's assets and potential, while those that had short term plans towards POTG had an opportunity to bank gains rapidly.

Company's market cap in millions exceeded 885 thousand times Portage's total assets as of the end of February.

In addition, those that made due diligence on POTG know, that the company is in the pre-exploration stage and as of yesterday has no acquired any mineral property.It is not developing such either.

Two years ago, Portage Resources Inc. lapsed without renewing a mineral claim and at present has no any rights to the minerals there. Since than, the company is “hunting” for other minerals properties, which to be explored.

Yesterday, while Portage was announcing its first agreement for mineral properties, the Canadian company Rio Alto Mining Limited (CVE:RIO), (PINK:RIOAF) closed the market valued by the investor at $345.54 million.

Oppose to the just concluded deal of Portage Resources Inc., two weeks ago RIO reported assay results from its La Arena Gold Oxide Mine located in Peru and still was valued at lower market price. Looks investor had too strong bullish mood on POTG.

It is difficult to say how long the strong upward move of POTG may continue, but one is clear.

Although the existing potential of Portage Resources Inc. the company does not discovered yet the gold of Incas in Peru. For ancient Incas, silver and gold were plentiful, but only used for aesthetics. If to the Incas, the gold was the “sweat of the sun” and silver the “tears of the moon”, to the investors holding POTG, the stock is a real made investment.

Average Reader Price Target For POTG:

Going Up!

What price do you think this stock will go to?

Reader Valuation Chart

Article Comments:

Guest wrote: 3:42 pm Jun 28, 2011
inspectorash wrote: 4:18 pm Jul 01, 2011
Take a look at 6/1 Closingprice. This article was right on - very good insight.
Guest wrote: 2:33 am Jul 03, 2011
There is a new CEO who is all kind of connected in the Peruvian mining industry. I see this stock at north of
Guest wrote: 2:10 pm Jul 06, 2011
With 637,200,000 shares outstanding a $7.50 per share price equals a market cap of over 5 billion dollars. The
pump and dump guys will be selling way before it gets there. And when they've sold look for it to go und
er a
Guest wrote: 8:22 pm Jul 08, 2011
From the rate POTG is moving a lot of get rich quick investors are going to jump on it like LEXG when it hit $
10.00 a share. Wait and see.
Guest wrote: 7:24 pm Jul 10, 2011
In it to win it!
richfield33175 wrote: 2:23 pm Jul 12, 2011
i sure hope it keeps goin up+up every day.
chetestridge wrote: 1:32 pm Jul 15, 2011
I,m investing in the company for the future. I will sell my shares when the compant closes. For some reason I
believe the new President will help make Portage explode.
Guest wrote: 6:29 pm Jul 19, 2011
If you own this stock, I have some prime farming land in the Sahara desert I'm willing to sell you cheap! See
Guest wrote: 1:02 am Jul 26, 2011
If I could touch it I'd pump it. If I were a bowl I'd catch all its shit.