just my 2c...PDN is a producer, not straight speccy explorer. Demand for their product derives from utility companies for power generation. Utilities are a defensive play i.e people still need to turn their light on at home, watch tv, write crap on facebook and punt the markets online, regardless of the economic environment, hence why utilites are called defensives. As for the french, U is cheap, so why would they stop importing "cheap" clean energy when they are struggling?
so from a fundamental perspective, PDN will have a market for it's end product, issue is at what U price? are they expanding? Yes. Is the price of U low? Yes. will it stay this low over the next 12-24 months? No. Will they benefit from icreased production from expansion in conjunction with increased price for U? Yes.
have a look at an ILU chart...mineral sands is their product...before the rare earths boom experienced in the past 2 years (yep, barely 2 years), companies like ILU in the rare earths business were making losses quarter on quarter and dogs of the markets...don't you wish you owned ILU from 4 bucks?
back to PDN...markets are seeing risk $$$ come off the table hard...add to this shortselling/derivatives trading and one can quite easily come to the conclusion that fundamentals are thrown out the window with indiscriminate selling. Buy and hold, IMO, is for suckers, especially in this market...an idea sold to investors by those taking the other side of the trade.
Markets can stay irrational much more than what you and I can stay solvent!
PDN looks great @ 2 bucks...if the Dow drops another thousand points, you reckon PDN won't fall lower?
just my 2c here. happy trading
PDN Price at posting:
$2.01 Sentiment: Buy Disclosure: Held
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