Q: As of 3pm, market really doesn't like PNG and its earnings. It's down over 8% on heavy volume. Your earlier comments said all is still intact for long term and market probably wouldn't react too harshly. Is this a buy opportunity or is caution warranted? Might there be problems that aren't apparent yet?
5i Research Answer:
PNG fell 18 cents on Thursday, but rose 12 cents from Monday to Wednesday this week. So for a small cap stock up 134% in a year we would not consider a 6-cent drop for the week so far as anything unsual, in an earnings week, where investors often sell on news. We might not focus too much on short term moves. Volume did increase and it was not a perfect quarter, by far, but our outlook comments remain and we do not see anything to warrant more caution (other than the usual small cap, market, rate, inflation, tariff risks of course).