yuro, page-29

I could understand it if you don't believe in PEN any more - the mixed signals and cessation of open communications are there for all to see. But if you do, and you feel the need to sell (because of better opportunities), then it's probably because you're not properly diversified. Manifestly, this is going to take longer than any of us thought. Let's also not look at PEN, or uranium stocks as a whole, in isolation. A company like Lynas (I hold), which not that long ago was trading at 2.62, is now trading around 1.16, and has been as low as 90 cents. A fall of 66% - and they are within arm's reach of actual production (dirty politics at play).

The two things they have in common is that Lynas, like PEN, but obviously not to the same extent, have been shorted (one massively). So whilst skittishness grips Europe et al, and whilst patient investors wait for the madness to play out, shorters will continue to have a field day. In other circles, some equity investors have thrown in the towel. Yep, for some it's just become too hard.

Not that we should ever pin the blame solely on macro events. With PEN and even Lynas, respective managements have conspired and found new ways to shoot themselves in the foot. In PEN's case, about SEVEN. What I will say is that the very thing that has sunk world markets is DEBT. Plain and simple. In the private sector, GREED leading to DEBT. The one positive I can say about PEN is that it doesn't have any. Whilst we have the cash, we can get through this.

If we get some form of massive reflation from Europe, I think we can buy ourselves some time. Until then, we'll probably be stuck in the doldrums - no matter what you're holding. Right here and now, IN MY OPINION, "what you're holding" is less important than owning a diversified portfolio of stocks.

So in a world awash with debt and/or potentially massive bail-out obligations, if you believe in PEN and the universal need to continue using if not upping the nuclear ante, 2012 should hold better times. To my way of thinking, we've been this low before, so it's not as if we're in foreign territory. Whilst Yuro and Hangseng are happy to hang around, I'll be hanging around too. Oh, and it would be advantageous for Gus to stop shooting himself in the foot.