MM’s views on ABB, WHC and uranium stocks please

Hi Adel,

• ABB: We have covered in another question.
• WHC: The share price performance of WHC has been disappointing. The reason being is that WHC have leveraged up to increase their exposure to the commodity by acquiring two additional mines from the BHP Mitsubishi Alliance (BMA). We think this will pay off over time, however, the greater exposure via leverage (i.e. they have taken on debt to buy them) will have an amplifying impact on WHC’s performance. We remain positive.
• Uranium: The Uranium price has pulled back to $US91/lb from $US104/lb and the Uranium stocks have cooled as a consequence. Cameco (CCJ US) was one reason, with the market expecting a further downgrade to production guidance, which did not materialise. Kazatomprom is reporting tonight, so this could all change by the time you are reading this. We sold our Uranium stocks into strength, we have started back with a small weighing in Paladin (PDN) for now.  Ultimately, we think the Uranium stocks go higher over time, but market position was very bullish, speculative money had flowed into the space at a strong rate through various vehicles, and we maintain a clear active mindset when investing in Uranium stocks from here.

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Paladin Energy Ltd (PDN)

LAST UPDATED 15/03/2024 13:41

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Paladin Energy Ltd (PDN)

LAST UPDATED 15/03/2024 13:41