Hard QuestionsOk...correct me if I'm wrong...
It doesn't matter how far Paladin will fall, we still get the same percentage of a large company. (.1076)
The June 25th Globe and Mail called it "a friendly deal valued at $1.14 Billion. I don't think it's all that friendly, because now (838,000,000 shares at what, $.82?) are worth a paltry $687 Million! And it's certainly not going to be worth an implied $1.30 per share. In fact, i wouldn't be surprised if the PDN share price fell another $1.50 before the deal is finalized.
By selling our shares now, we are losing any potential upside that may come after the deal is done. Who is content at driving PDN down? Someone who is intent on buying shares from disgruntled FCU holders at rock bottom prices now...only to drive the price up where it should be?
Yes...really sleazy stuff going on? Perhaps interested Chinese stockholders picking off FCU shares at practically half-price? Whatever happens, it will still be a pretty influential company in the Uranium World. Is FCU such a bad deal for PDN, that it should be so badly penalized? No, something else is going on here.
I think we should believe Haywood, when they say it's a Buy with a $2.30 target.