Paternoster Resources available to buy at significant discount to Net Assets #PRS

By Richard Mason

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Paternoster Resources (LSE:PRS) has just hit the bottom of its current price channel, and the Relative Strength Index (RSI) is screaming ‘oversold’. The Resources investment company recently underwent a transformational deal with RiverFort Global Capital. There’s an initial resistance trend line (dotted), currently causing a barrier at 0.096, with 0.11 the next step up, but fundamentals speak louder than technicals in this case. The company has a Market Cap of just £1.7m – a sizeable discount to its net assets as of 30th September which was £2.98m.

It may take news of ongoing deal flow to spark a full reversal of the current downtrend, but at such a discount to Net Asset Value (NAV) today’s share price could prove to be offering an exceptional entry point.

Author: Stuart Langelaan

Disclosure: The Author owns shares in the company mentioned above

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Author: Richard Mason

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.