OTCQX:PALAF - Post by User
Post by
fredviewon May 22, 2015 7:46am
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Post# 23753216
Dundee report from May 20
Dundee report from May 20 Interesting they point out PDN has turned the corner with their balance sheet. Might be a decent spec if market turns
Buy producers protected by contracts. To avoid short term volatility we suggest sticking to producers with fixed price contracts that help reduce impact of short term spot market price fluctuations. This includes Ur Energy (URE-T, BUY, C$1.80); Uranerz Energy (URZ-T, Tender); and Energy Fuels (EFR-T, Buy, C$9.00 target). Buy Cameco (CCO-T, BUY, C$24.00 target) on weakness, understanding that if this sector lags, Cameco may lead the way. Steer clear of Paladin Energy (PDN-T, BUY, C$0.50 target) just for the short term while the market stabilizes as it is now largely linked to spot. Its share price performance has already trailed its peers over the past three months. But remember that Paladin has turned the corner with its balance sheet, has much improved operations, and demonstrates amongst the highest leverage to rising uranium prices of its peers, in our opinion. The high grade Athabasca Basin explorers such as Fission Uranium (FCU-T, BUY, C$2.40 target) should not see as much impact due to longer time horizons and potentially a higher risk-reward shareholder base.