Cooler heads

I can see that many in the group myself included are very unhappy with the
situation PEM finds its self in.But after
cooling my Jets with a few Green ones yesterday I came to the conclusion that the
current condition of PEM is mostly out
of its control.Market conditions failed to reward the share price and good drill
holes were sold into.This is happening
across the entire sector.Some companies have been punished more that others.A company
I own Newstrike Capital put out a
another glory hole the other day (No other JR out there has these world class holes)
and yet the stock sold off.The day
prior to the NR Lucas Lundins holding company increased its position in NES on the
open market of 800,000 @ $3.11.The
shares closed Friday @ $2.85. So even big bank cash rich JRs are suffering the same
fate.

These kind of market conditions cause JR Flame Outs.These conditions require a
management team that can hunker down slash
spending during the Tempest and wait for better days.That is a spot were no CEO
wishes to be,but it separates the men
form the boys.

This brings me to PEM. A series of storms have been raging over PEM for the past 9
months.

The drill program got off to a slow start

The labs were backed up so data that was needed to find drill direction was not
available in a time to finish the
25,000m program and that caused PEM to fall well short of the plan.

When holes were reported even some very good ones,the stock was sold off by a market
that was in a irrational mood.

So all of those conditions were outside the hands of the management team.

Now we find ourselves with a low treasury,a restatement of a 43-101,and a financing
that is unclear as I write this.

These thing are in the hands of management and therefor can be fixed.

The financing if any should be very limited,drill programs should be very
limited.Spending should be cut.And last
management must restore investor confidence by making the 43-101 compliant ASAP.

Then slow it all down and wait for better market conditions to improve before a major
financing to fill up the
treasury, wait for the market to respond to to drill results in a more rational way.

And last but not least investors who hold PEM stock should remember Rome was not
built in a day.And Rome is not
burning.Market conditions will one day return this current depression in JR gold
stocks into one of the greatest buying
periods in the JR resource space.Thats not to say more Flame outs are on the way but
PEM will not be one of them in my
view.

James