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PEN peninsula energy limited

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18/12/24

15:30

Post #: 77106915
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Originally posted by Lord Bell ↑

Dc....Oz stocks are justifiably slow movers.
Australian Institutions looking for a U.S. correction that never came ...US market just churned on looking at AI ...Uranium ..Lithium ..growth stories .You could say the dynamics of a the bullish predictions of new age were driving the US market and of course the Trump effect of "Make America Great" ..while ASX investors ie the OZ institutions took a Buffett lead and decided on a more risk off approach.
Certainly no question the USA is fully valued on a PEx basis and there is a high built in expectation for strong profits to come through in the USA.

Really a mixed bag with UK expecting slower growth and further inflation from the recent budget with a strong anti - Starmer reaction to the recent budget and clear signs of a fall in GNP.Europe a basket case surrounded by a a Russian Ukraine war and much higher energy prices from imported oil and gas from Australian and USA much more highly priced than the cheap Russian oil and gas that Germany and France had been receiving for years .France is in a debt crisis and Germany is the sick man of Europe...both facing much slower growth rates and a demand from Trump to spend their fair share in defence instead of depending on US defence expenditure on Europe.

China is slowing down..money moving out and industry repositioning outside China ..very difficult repercussions from the massive property collapse in China with a negative wealth effect impacting on the Chinese Stockmarket with the added fear of huge Trump import tariffs to hit Chinese economy harder..while the squeeze is on many countries that China gave huge loans too..and this and a slowing China that is no longer buying their goods and commodities will impact many of the Asian tigers growth...including Australia.
Oz and USA realises China is now dumping highly subsidised Chinese products like Chinese electric cars.This suggests problems now inside and outside China...so we have deteriorating domestic and international relationships with big Economic pressures on Xi who is Politically moving backwards to a more centralised communist type approach and like most economies that undergo economic contraction ..a huge jump in arms expenditures now moving to at least four times their annual rate of defence expenditure.All this contraction coming from China is impacting the resource cycle despite strong Chinese fiscal stimulus.

It is generally agreed that without high immigration in to Oz that the country would now be in recession ..Hence the ASX is not exactly bouncing forward.
The case for Uranium is strong as Energy Production changes due to internationally agreed Climate Change policies continue to reduce carbon emissions...Pen is especially protected with a strong pro-USA approach from the next "Trump Republican Government" which appears to be the most likely next US Government in the very near future.

In conclusion...The world economic growth is slowing and this will impact most industries and its impact is beginning to be felt in the resources sector in the ASX and will impact more on the ASX resource sector as time passes.

Uranium is a special case with the conversion from oil and gas and coal to nuclear energy gradually gaining momentum under the auspices of Climate Change initiatives and Trumps policies that protect Domestic Manufacturing and mining in the USA ..

Hence Pen should benefit from multiple forces benefiting from US growth and US protectionist policies over critical Uranium production in the USA ...and this will soon draw traction from the Australian Institutions as other areas of the ASX show slower growth and a fall in earnings growth and as Pen production expands and earnings grow takes off.
All the Best to All

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did you write this???

PEN Price at posting: $1.07 Sentiment: None Disclosure: Held
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