Radar stock for a Wednesday – Paramount Gold (PZG)

Take a look at Paramount Gold and Silver Corporation (PZG).  Here is a gold and silver junior mining company with the strongest balance sheet of any miner I have ever seen.  Here is a summation:

$20MM in cash and little or no liabilities

In the mining sector, cash is extremely important.  PZG has the obligatory resource report that claims a phenomenal amount of gold in ground.  In PZG’s case, that number is 2.65 MILLION ounces of gold in their Sierra Madre, Mexico claims.  And, In PZG’s case I would tend to believe them.  They have done a great deal of work getting to that number.  The salient points are included in this slick investor’s report.

The chart is what is interesting to me.  Will PZG bounce off this level or plunge through.  I don’t suggest we guess, but rather watch for any declaration of trend.  The MACD is bearish, but the stochastics are showing that it is entering oversold territory.  That could mean the stock will continue to fall in the near term, but I would look for a bounce.