leading broker time to sell pdn, page-12

RIO, the worlds most conservative mining company are calling the uranium spot price to US$200/lb (currently US$113/lb). There are not many ways to get earnings leverage to uranium at the moment, Palladin, ERA and Cameco offshore. ERA has made between $40-$45m profit per year over the last decade due to production being locked into long term contracts that are well below spot and will continue to do so for a few years still. Yet there is still research out there that forecasts earnings for ERA of $120m next year (not to mention the production hit from rain etc). Simply wrong. PDN is the only stock that has the ability to enter into contracts that reflect the current pricing environment, Borschoff has spent a lot of time positioning the company to be in this space right now. PDN's share price is being hit hard, yet the pricing environment looks to be going from strength to strength. I think it's a good buying opportunity, Broker aren't always right and if most had to live by their recommendations they'd starve