fat prophets says to hold

Here is an extract:

http://www.sharecafe.com.au/prophet.asp?a=AV&ai=4395

Significant Encouraging Developments

Reflecting strong corporate interest in the uranium sector and the quality of its Mt Gee uranium deposit, Marathon Resources continues to trade well in advance of Crosby's $3.52 a share takeover offer. We see little downside for shareholders given current circumstances, including the possibility of rival bidders emerging. Reflecting its confidence, Marathon has appointed one of Australia's most experienced resource executives as its new CEO.



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"The extraordinary value in Marathon is now being realised, but we believe there is even more upside to come."

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Fat Prophets first recommended Marathon Resources at 72 cents in March 2006 (Fat Mining 16). Our last review of this stock was in February (Fat Mining 68).




Since our last review in March, there has been a clear acceleration of the upward trend. As a result, the stock achieved a new all-time high of $6.42 last week. This represents a gain of 145% in just one month.

Following such rapid gains, the upward trend of any stock would be at risk of pausing for consolidation. Marathon is no exception. In the near term, we anticipate further consolidation with last week's low of $5.10 providing initial support.

Given the strength of the longer term trend, we believe the outlook for Marathon remains positive. In time, we expect prices to extend to new highs above $6.42.

Click here to find out how we can help you identify this type of opportunity.

As we have commented in our recent reports on Marathon, corporate activity in the uranium sector in Australia has grown to reach fever pitch. The best recent example of this is the takeover bid of Summit Resources by one of our uranium favourites, Paladin Resources.

Of course, Marathon Resources, with its large, flagship Mt Gee uranium deposit in South Australia, has been one of the companies in the best position of all to benefit from the frenetic sentiment in the sector.

Indeed, Crosby Capital Partners announced a substantial increase its cash takeover bid for Marathon, boosting its bid from $0.68 a share to $3.52 a share.

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Cheers markco2