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June 26th, 2008

Stock Pick by GusherStocks.com: North American Palladium Ltd. (PAL)

Stock Price: $5.28

North American Palladium Ltd. (NAP), is one of North America’s largest producers of palladium, producing approximately 5% of annual global palladium mine production. North American Palladium’s shares and warrants are listed on both the Toronto Stock Exchange and the American Exchange.

PAL's revenue for the quarter ending in March 2008 was $70.8 million - an increase by $2.3 million (3%) compared to the same period last year. Their net income increased significantly over the same period from $5.5 million in Q107 to $12.6 million Q108.

PAL is trading at a market cap of around $423 million. With their positioning in the Pallidium industry and their significant net income last quarter, we believe PAL is undervalued.

PAL rose at the beginning of this year, but hasn't been as strong since March. With prices of palladium, platinum and gold all rising substantially in 2008, 16%, 33% and 5% respectively, this could allow for PAL to move positively.

 



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