Plandai Biotechnology (PLPL): A Half Priced Penny Stock


PLPL Has Hit 0.22 But That’s Only Half The Distance

We can surely agree that PLPL is not trading anywhere near its true value.

PLPL – Plandai Biotechnology, Inc.

Current Price: 0.20 (Get Quote)
Shares Authorized: 500,000,000
Shares Outstanding: 110,495,300 at May 21, 2012
Shares Issued To Acquire GES: 76,000,000
Float:  34,495,300 (estimated)

Plandaí Biotechnology, Inc., through its recent acquisition of Global Energy Solutions, Ltd. and its subsidiaries, focuses on the farming of whole fruits, vegetables and live plant material and the production of proprietary functional foods and botanical extracts for the health and wellness industry.  Its principle holdings consist of land, farms and infrastructure in South Africa which are encompassed in the following entities:

  • Dunn Roman Holdings Africa (Pty), Ltd     – 81% owned by GES
  • Breakwood Trading 22 (Pty) Ltd.                  – 74% owned by Dunn Roman Holdings-Africa
  • Green Gold Biotechnologies (Pty) Ltd.       – 74% owned by Dunn Roman Holdings-Africa

PLPL IS EXTREMELY Undervalued at 0.22 and here’s why….

PLPL’s processing approach follows from 10 years of research and technology licensed  from  Caldar Valley Limited.

In January, PLPL’s $13 million debt financing from the Land and Agricultural Development Bank serves as an indication not only of the potential of PLPL’s technology, but also the benefit the Company’s business model may have on the provincial economy.

As noted in the Company’s investor presentation here, PLPL reports a $50 million recent valuation of the Company, with income growing to $27 million in 2012-2013 and $90 million within 5 years, and net profit growing to $19 million by 2017 and $90 million by 2020.

We’re targeting for an ROI of over 100% on PLPL and here is why:

PLPL‘s extracts from live plant material provide 6-8 times more bio-availability than green tea extract which sells at an average price of $500/kg.

PLPL was able to secure $13 million in financing from the South African Land Bank,  an agency of the South African Bank, without any convertible stock or future stock dilution.

I highly doubt that the South African bank is going to invest on a #2Flusher of a company with no foreseeable growth forecast.

More positive news is that Dunn Roman Holdings Africa (Pty) Ltd, a subsidiary of PLPL, will be under a new contract to acquire tomato paste for ZZ2 which will be processed to recover highly bio-available antioxidants using the company’s exclusive Hydronamic Extraction Technology.

This deal alone could add in excess of $700,000 in monthly revenues for PLPL.

At .20, PLPL Is .09 Below To 200 Day and .24 Below Estimate

Shares have been ripping nicely since the funding was signed and now would be a good time to hop in on the action before it really takes off.

Look at the previous 4 days of trading on PLPL:

08/06  0.1500, -0.005 -3.23% Volume: 26,100
08/03  0.1550, -0.005 -3.12% Volume: 36,400
08/02  0.1600, -0.015 -8.57% Volume: 215,500
08/01  0.1750, -0.005 -2.78% Volume: 179,600
Right now PLPL is consolidating nicely around .20 per share and could rip up quickly up past the resistance of .22 and skyrocket to next area of resistance.

As noted in the Company’s web brochure, PLPLis forecasting profit of $90 million by 2020. With today’s announcement recommending a “BUY” on PLPL in the recent KonLin Letter by Konrad Kuhn, (see here) it makes a good time to get into PLPL.

With approximately 110 million shares outstanding, a valuation of $50 million implies a current PPS of approximately $0.455.

Sector funds with some relevance for PLPL’s plan of operations are trading at a multiple of approximately 15x earnings.

If applied to the Company’s short-term estimate of $19 million in net profit by 2017, the future valuation of PLPL may be $285 million, or a potential future share price of approximately $2.80 based on the current 110 million shares outstanding.

Well Over 100% ROI!

The market has been very bearish as you guys know this last month and is one of the reasons why this stock has not ripped higher.

The fact that PLPL‘s proprietary biotech will be able to “supercharge” the potency and benefits of green tea extract makes this company a strong buy in my eyes.

Like every stock traded on the OTC, NASDAQ, NYSE or any other equity exchange, the lowest possible share price for PLPL is $0 while the highest possible price is unlimited.

At 0.20, what is there not to like about PLPL

Get a look at PLPL. You can start your research here:

PLPL Website
PLPL on OTCMarkets
PLPL at SEC.gov

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***Reminder: never chase stocks that gap at the open and always protect your profits!

Good luck in making the Best Penny Stock picks.

2012 – Become a Millionaire!!

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