PEN chart, page-28

Hi Fbx258,

Thanks for posting the Shaw's report. I think they are right on the general theme but I disagree with their call of PDN being the top pick in the ASX Uranium sector. I am a holder of PDN. However I believe PEN to be a superior way to play the sector. I hold PDN for diversification and because my super only allows me to hold ASX300 companies.

Although I agree with Shaw's that PDN can restart with a lower U price than PEN, I think the amount of debt that PDN are carrying and the amount of capital still required for a restart makes PEN a far safer way for investors to play the sector. I've faced considerable pain in capital raisings in the past and I was very happy to buy into PEN after their CR, knowing that I can sit and wait for the supply shortage to do its thing without much prospect of further dilution being required.

Cheers,
Tim.