Paladin looks set to benefit from Uranium’s revival, page-6

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19/07/15

13:45

Post #: 15657592
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Originally posted by Dean210 ↑

Hi BigJoe,

Article parra-phrases (if not directly quotes) the june 2015 activity report. However, again people should not compare quarter revenue quarter on quarter, due to long term deliver contracts. The article should have gone onto say: . . .

I do believe that PDN has turned the corner. The business is now:
* turning into a low cost producer, by reducing C1 cost and overheads
* addressed the short term debt issue
* securing assets that will added significant value in the future (Carley Bore acquisition at a $1/lb is a great purchase)
* secured a strategic alliance with CNNC
* Historical decision by the Canadian government for the Michelin Project, which will allow PDN to hold the majority of the asset and sell it minority stake to a international investor.

On the Macro environment front, Paladin has survived the industry life cycles of Shakeout - and decline and has positioned its self for the renewal. The Renewal cycle will be kickstarted with the restart of Japan Nukes (Aug 2015) and this will be the catalyst for a small recovery in the Uranium spot price to $40/lb and should end CY 2015 around $45/lb.

The Industry green shoots are about to appear.

I am sticking with my prediction of 19/6 (a bit bullish but I am a long bull on this stock)

I predicted 19/6:
Qtr 1 2015-16: PDN to make a small net loss. $U=$40/lb. Loss will be smaller then people think and SP will trade around $0.40
Qtr 2: 2015-16: PDN to break even. $U = 45/lb Brokers will re-rate PDN, and SP will be around $0.50 Commsec will lift the 0% LVR on PDN, which will also assist share price.
Qtr3 2015-16: PDN to report profit. $U50/lb PDN will break the $0.50 barrier and move up to $0.60
Qtr4: 2015-16: PDN to report full year profit. $U55/lb and SP to close June 2016 at $0.65

I waited for the yearly end of June drop in SP and have been topping up since then. Also I have now changed my sentiment to from Hold to Buy, as I am looking two years into the future not 6 months like some trading houses.

Big Joe in 2017 this will be $1+ stock and I would have made 400% return, that is if it has not been taken over by then.

Regards

Dean

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Guys
I like PDN and agree it's cheap down here but predictions of 1 dollar share price are far fetched. If the U price does recover ( I think it will ) then cash flow will go towards paying down debt and investing in future mines and production. The share base is far too large now for a dollar share price. I still think those buying now could see 50-159% returns , perhaps even 200% in 3-4 years but 1 dollars SP is doubtful

PDN Price at posting: 24.0¢ Sentiment: Buy Disclosure: Not Held
8 Upvote

0 Great analysis

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(20min delay)
Last $7.66		Change 0.370(5.08%)		Mkt cap ! $2.339B

Open	High	Low	Value	Volume
$7.54	$7.84	$7.52	$29.39M	3.819M

Buyers (Bids)

No.	Vol.	Price($)
4	128	$7.66

Sellers (Offers)

Price($)	Vol.	No.
$7.67	25716	46

View Market Depth

No.	Vol.	Price($)
19	8885	7.670
14	6519	7.660
18	8858	7.650
12	9981	7.640
9	7253	7.630

Price($)	Vol.	No.
7.680	3218	16
7.690	12134	28
7.700	21229	25
7.710	8095	20
7.720	3177	10

Last trade - 15.30pm 18/11/2024 (20 minute delay)

PDN (ASX) Chart

Paladin looks set to benefit from Uranium’s revival, page-6

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Paladin looks set to benefit from Uranium’s revival, page-6

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