Im not a big fan of the Perma bull mentality of many on here, but that seems to have subsided with the state of the SP.
This is a long term play, and is a risky speculative stock.
There is alot of evidence to say that the uranium price will lag for a while yet, and that that there are stockpiles and swaps etc. going on. So there will be no joy coming from uranium prices.
This makes the value of PEN not brilliant value at current U prices i.e. $40ish
What about the PFS and we aren't producing till 2012?
The PFS will use (I assume) an estimated price of around $60-70.Will U be worth that in 2 years? If it was to be taken at current prices and capital exp. and the 2 Billion shares on issue are taken into account, then PEN may be a completely different story (not a great one).
It has been said already that U is unloved. If we have a GFC2 (which I don't see in the immediate future) within the 18 months it takes to get to production, what could U be worth then? And what would the USD be worth then? (inflation will be unstoppable in the future).
PEN will continue to drop if the current market sustains this drop. And to be honest if the PFS was released today what would it do to the SP...IMHO...Nothing.
PEN ticks boxes, but at these prices, this many shares, so far from production, a slack U price and unstable market make it unwanted.
I'm just venting as I have made mistakes with PEN with respect to entry timing and holding too long in this correction. These are my own mistakes and blame no-one else.
PEN does have a lot of good things going for it, but the current situation is masking that, and don't be surprised of how long that lasts.
Thanks for your time... now its time for a beer.
Noisium
PEN Price at posting:
3.0¢ Sentiment: LT Buy Disclosure: Held
