outlook for U and for PDN
Quote:
Originally Posted by
mistymountain
.......Maybe deteriorating price of U is having the adverse effect?
I was just reading
http://www.energymetals.net/userfile...ril08final.pdf dated 21 April 08.
just one opinion, but this guy is connected! Warwick Grigor - Far East Capital.
partial excerpts:
Short Term Markets Out of Alignment With Long Term Outlook: Sentiment in uranium stocks, and the spot
market for uranium, is out of alignment with the long-term outlook for nuclear power. Every week we are seeing
strong statements of commitment to expanded nuclear power from all around the world. The case for investment in
the sector is becoming increasingly more compelling. How long can we compress the sentiment spring before it
bounces back?
and
The U3O8 spot price has stabilised in the $65-75/lb range for the
past couple of months, with the latest Trade Tech Spot Price Indicator falling to US$65/lb. This seems to be
bringing the buyers out, as eight utilities are reported to be seeking 20 mill. pounds at these levels. The latest UX
Consulting Price is US$68/lb.
and, in a summary of dozen of U producers and explorers
Paladin Energy - A leader out of favour due to commissioning issues, but still has the best growth curve.
Investment Perspective: The PDN share price has not been performing as one would expect of an industry leader. Certainly it has been much weaker than ERA. It seems that positions held by the failed broking groups, Opes Prime and Lift, have had a deleterious impact.
PDN offers comprehensive exposure to the uranium sector with production that has come on-stream at a perfect time to benefit from higher uranium prices, together with a pipeline of projects that will see a growth curve that extends for perhaps a decade. We expect the share price to recover strongly from these levels. It could also be a takeover target.
although I agree the chart looks like a falling trend, the bounces are getting very narrow and on decent volumes, and some weak buy signals (MACD,sto).
$4.14 on 29 Apr is lowest it's been since that low of $3.94 on 22 Jan.
Could go either way? Get some now, or wait to see if goes any closer to 3.94?
ToBo