Passport Potash Inc. (CVE:PPI) (PINK:PPRTF) has their stock price beaten by a misunderstanding between the company and regulators.
PPI share price performance seems to stabilizing after the initial drop. PPI stock traded 1.5 million shares on Tuesday as the price climbed back up 8%. The stock had tumbled down a day before when the company was forced to explain themselves to the British Columbia Securities Commission.
The commission was concerned that Passport might not have disclosed a full economic analysis for the Holbrook project. In return the company issued a news release stating they have retracted the previously disclosed calculations which were done for presentation purposes only.
This misunderstanding created a second large selloff in the past three months and added to the general share price downtrend which is dominating throughout 2011. On the other hand the stock has finally reached one of the potentially strong support zones at 40 cents per share.
The fundamental position doesn’t look encouraging for bulls either. The company has their $56.7 million market cap based mostly on expectations related to their properties. The stock could go as low as 25 cents per share and it still would be an appropriate market valuation since Passport has only $14.2 million net tangible worth.
