Post by
wreakhavok on Sep 07, 2024 6:36pm
Hard Questions
Ok...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.
Comment by
Jolleyguy on Sep 07, 2024 7:50pm
This isn't just a tree shake though as we're seeing losses all through the sector. Maybe someone is taking advantage of the overall poor sentiment and make fcu fall farther but as far as smart money shaking retail, it's not the sole reason we're down so far.
Comment by
Jolleyguy on Sep 09, 2024 12:01pm
I was against the deal a jit but since then I understand the reason management is for it. FCU doesn't have the resources to efficiently go ahead with the project withojt severe dilution, where paladin has mines and revenue to offset the cost of the mine. Paladin also has a ton more exposure to different markets.