Thoughts on ASX Uranium stocks short-term
The Uranium sector seems to have gone into hibernation despite the obvious global supply/demand situation. What are your views on the near-term potential for ASX-listed uranium stocks? Regards, David
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Answer
Hi David,
We are bullish the uranium sector over the medium to longer term but we actually took profit on our Paladin (PDN) position in the first week of April for our Active Growth Portfolio, we remain long in our Emerging Companies Portfolio. The recent “Buy & Sell” in our Active Growth Portfolio was our second foray into the stock in 2024 and if it continues to correct back towards $12 we anticipate re-entering in line with our longer term outlook – we are not traders at MM but these stocks don’t yet make a profit/pay a dividend making them often volatile sentiment driven stocks which lend themselves to active investing.
Investors in the uranium sector must be cognisant that PDN has more than tripled in less than 12-months, remember orderly corrections are a healthy characteristic of markets.
- Boss Energy (BOE) $4.40 – our pullback target is under $4, i.e. over 10% lower.
- Paladin (PDN) $13.45 – ideally we are looking to buy back into PDN under $12, around, again 10% lower.
