WHC & PDN

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Question asked 27/07/2024

WHC & PDN

Hi James and team, as always thank you so much for your reports and insights, which are very valuable. I'd like to know your view on PDN in the near term, do you think it has bottomed or near it? In regards to WHC I understand that the production update wasn't a very good one, since the stock kept falling , even the day it was released. I saw that the cost were a bit higher than expected, and therefore the margin expectation lower. Is that the reason for the decline or something else? Has the view the market has on the stock changed? (Sorry if you have gone into this stock in the last few days, I haven't have time to go through all your reports) Thanks again and have a great weekend

Answer

Hi Dario,

I’m glad we can help, lets try and add some value with these two stocks that have been struggling of late:

PDN – if MM had no position we would be accumulating PDN after its 38% correction, we’ve re-entered too soon but we remain bullish the nuclear/uranium theme for energy over the coming years. However, PDN pays no dividend and has rallied strongly over the last 12-months placing it firmly in the sellers sights as market reversion has unfolded into yield-names through July, primarily at the expense of the markets outperformers.

WHC – We have touched on Whitehaven a few times this month including one note post its report. WHC has pulled back 15% from its July high, while New Hope (NHC) has slipped 13%, hence we believe its more sector and market related weakness that’s weighed on WHC. Overall we remain bullish both on the coal sector including NHC and WHC but subscribers must remain conscious that the coal sector is a volatile one at present and will continue to be.

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Paladin Energy Ltd (PDN)

LAST UPDATED 26/07/2024 11:38

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