Investment Q&A

From 1998 to 2012 Paladin grew earnings at a compound 30% rate, bu the stock really did not do that much until the last three years of its public life, before it was sold in 2013. The things to watch are valuations and earnings. If earnings growth accelerates, which is possible, valuation should as well. This is the coveted 'double double' where earnings go up at the same time as valuation, and big stock gains can be acheived if and when that happens. But as noted, investors have already been waiting a long time for this. We think another acquisition is needed here to kick start growth to a faster rate. For now, the boredom continues. The buybacks are a net positive sign, but are not likely by themselves going to change valuation. Here is a good summary of Paladin's history.