My take is different.
I think PDN announced early to flush out potential bidders. We know there were three govt backed bidders and others. In my view AM has set the minimum level of the deal to the market. This is an investment banker - they don't rush to make premature announcements without a clear agenda. The 21 Juky ann not only sets the financial payment , it mentions a LT off take and the date the deal is likely to close . In my mind the aim couldn't be more obvious .
For those that look to the PDN tSX listing for guidance , the news was greeted by a rise of 1c to 19.5 on double the average volume
I think Monday's open will see a price between 20-22 . As the deal moves closer and PDN announces progress the price will rerate. ( assuming no other deal in the interim
For those who commented that cameco is better exposure not only have the made a loss and have cut production to 28m lb , but they have the tax department after them for 3.6b in what the claim to be unpaid taxes . That's one huge potential liability
You buy PDN if you believe in the uranium story medium to LT. My view is like zinc , there comes a point where the underdevelopment of the metal and the market begins to rerate very quickly.
PDN Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
(20min delay)