How to explain PDN's stellar run?

Fab · 20 March 2006

Hi,

I have got some PDN that I bought at 2.45. People at the time where saying it is over price then it went for few weeks around the $2 mark to then shoot up to over $4 today. This stock seems to have no limit, I am happy about it but I would like to understand why so a stock like that keeps on running. I understand the renew of interest from India and China in buying some Uranium from OZ might be the main reason but then why PDN is running so high and fast compare to the like of RIA or BHP ?

sam76 · 20 March 2006

Re: How to explain PDN stellar run

check out EXT - tenements right next door to PDN

michael_selway · 20 March 2006

Re: How to explain PDN stellar run

Fab said:
Hi,

I have got some PDN that I bought at 2.45. People at the time where saying it is over price then it went for few weeks around the $2 mark to then shoot up to over $4 today. This stock seems to have no limit, I am happy about it but I would like to understand why so a stock like that keeps on running. I understand the renew of interest from India and China in buying some Uranium from OZ might be the main reason but then why PDN is running so high and fast compare to the like of RIA or BHP ?

I think its the most popular uaranium specialist stock out there, even though fwd PE at moment is 40+

Earnings and Dividends Forecast (cents per share)
2005 2006 2007 2007
EPS -0.6 -0.7 8.8 8.8
DPS -- 0.0 0.0 --

Also there doesnt seem to be any correction for Uranium as yet? basemetals, precious metals, iron ore/steel, oil, coal etc have...

URANIUM TO HEAD NORTH OF $500/POUND?
http://www.stockinterview.com/stm-bambrough.html

rederob · 20 March 2006

Re: How to explain PDN stellar run

MS
Work out the possible price of uranium when PDN becomes a producer.
Then put your PE on the stock.
Then tell Fab why he might want to buy more!

By the way, as there is no "exchange" for uranium miners to deliver into, the market is being driven by immediate needs and future supply contracts. For now there is no time frame suggesting when the "demand" equation will be satisfied, so power utilities will keep bidding up the price.
Unlike coal, which can add significantly to consumer prices, uranium is relatively price inelastic. So if uranium is $100/lb, consumers would not really notice the difference in price reflected in their power bills.

nizar · 20 March 2006

Re: How to explain PDN stellar run

rederob said:
MS
Work out the possible price of uranium when PDN becomes a producer.
Then put your PE on the stock.
Then tell Fab why he might want to buy more!

By the way, as there is no "exchange" for uranium miners to deliver into, the market is being driven by immediate needs and future supply contracts. For now there is no time frame suggesting when the "demand" equation will be satisfied, so power utilities will keep bidding up the price.
Unlike coal, which can add significantly to consumer prices, uranium is relatively price inelastic. So if uranium is $100/lb, consumers would not really notice the difference in price reflected in their power bills.

tend to agree

PDN's stellar run has alot to do with market sentiment. Alot of people have made alot of money from this stock and its clearly the favourite U stock out there.

It still has a way to go because as U spot price increases, langer heinrich and malawi mines will increase resources as the cut-off for uranium can be reduced ie. lower grades can still be profitable

and those yellow cake contracts like those 2 in january will continue to flow in as september production nears

Prospector · 20 March 2006

Re: How to explain PDN stellar run

It is certainly my favourite stock of all time - I bought in at 11c and you can buy a lot of shares at that price

crackaton · 20 March 2006

Re: How to explain PDN stellar run

Prospector said:
It is certainly my favourite stock of all time - I bought in at 11c and you can buy a lot of shares at that price

Nearly as good as poseidon

Prospector · 20 March 2006

Re: How to explain PDN stellar run

Funny you should say that! My Aunt was working in Poseidon at the time and bought in at rock bottom too! Is that insider trading? Happened a long time ago though

michael_selway · 21 March 2006

Re: How to explain PDN stellar run

crackaton said:
Nearly as good as poseidon

Is Poseidon a stock?

thx

MS

Prospector · 21 March 2006

Re: How to explain PDN stellar run

If that is a serious question you must be much younger than me!
Posedion had a stellar rise in the 70's - nickel I think (I was only a wee young lass at the time )

123enen · 21 March 2006

Poseiden. Didn't qiute understand what was going on at the time. A story of hope and hype.

A nickel discovery in W.A.
Some bad mine resource statistics.
Share price went from 80 cents to $280
I understand that when mine resources were clarified it was only worth about $5 per share.

Share price dived.
Don't remember if the mine opened at all.

Fab · 21 March 2006

Why not try the only PDN warrant available then PDNWMC ??? Seems to be a quicker way of making a quick buck.

How to explain PDN's stellar run?

Fab

sam76

michael_selway

Coal & Phosphate, thats it!

rederob

nizar

Prospector

Not a scaredy cat anymore

crackaton

Prospector

Not a scaredy cat anymore

michael_selway

Coal & Phosphate, thats it!

Prospector

Not a scaredy cat anymore

123enen

Fab

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