PDN -4.76%: News out yesterday that the Chairman + 1 Non-Exec Director sold decent lines of PDN shares the day before the Nuclear power plant was attacked in Ukraine was getting some airtime in the press today and the stock fell as a consequence. Clearly some interesting timing, more a fluke we would suggest however it does show the view from the inside when the stock gets over 80c. This time around they sold 4.5m shares while they also offloaded stock in December above 80c as well. As subscribers know, we sold out of PDN recently, more a call on risk than anything, however, we do remain medium-term bullish on the sector. Our view is that the Uranium stocks are leveraged plays on the Uranium price, they get extended when momentum / optimism towards the sector is strong and will undershoot when the momentum fades. The short-term in MM’s view now looks more clouded from a sentiment perspective following the incident in Ukraine even though it was a non-event. PDN at 70-80c is pricing in Uranium north of where they are today (~US$50/pound), hence we sold the stock for now, but have held the Sprott Physical Uranium Trust in our ETF portfolio which is more closely aligned with the Uranium price and less full of the speculative euphoria.
MM is now neutral/cautious PDN short-term, but bullish in the medium-term
Add To Hit List
