PDN in 2015, page-48

agreed.

there are people taking the 'glass is half empty math based' view - ie cheapest shares being issued are 26c so stock goes sub 26c. but they are overlooking some shares are being issued at 42c and that if you sell your existing holdings just to have 26c share position - you will halve you holding. So the stock price then jumps back up as people try to get back to their target holding

then theres the 'world is ending' view - uranium spot dives, and suddenly pdn has massive dilution and earnings reduction - SP goes down down down

and there are people taking a completely non math based view - like big joe. who continues to be the kind of cheerleader the dallas cowboys used to hire

like i said before, ive seen several of these deals - and ive seen 3 types of outcomes - most of it is determined by the 'sizzle' in the stock market and stock during the time of the deal.

but given the strength of general interest in uranium, the lack of new supply threats below $us65/lb - it seems likely to me low 30s with a brief dip into high 20s is the likely scenario at this point.

citi - the big short caller - has shifted to hold and 35c/share - so id imagine some of that shorting interest will already have disappeared

the big downside risk remains the oil price slide imo. pdn will get sold by energy etfs regardless of intrinsic merit

the big upside would be a spot price move up. that would dramatically tighten the sphincters of everyone who sold at 38c or above on assumption they can buy back in at 26c