PDN +1.93%: was hit yesterday on lower-than-expected FY26 guidance, though it recovered some of the loss today as the company did the rounds. We had them in this morning, and we came away from the meeting with more confidence about what comes next.
Yesterday, they guided to 4 to 4.4m lb for FY26, which was at least a 10% miss to expectations. Today, we met with the relatively new CEO Paul Hemburrow and get the clear sense that he is a realistic, operationally focused CEO, and we believe the market will appreciate this approach after multiple years where PDN has been a good story but has been let down when it came to delivery.
We like straight shooters at MM, and Paul seems exactly that.
We have a 4% target weighting across two portfolios, bought at higher levels. Given the mark to market declines, the prevailing position size in our portfolio’s is lower. We intend to re-balance back up to our 4% target.
MM is bullish PDN
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