Paladin Energy (PDN-T Unlisted)

Uranium has to go to $40. Until then, keep away from it. He thinks it would be dead money for 3 years. There is nothing going on in the sector.

Their mines have come into production much later than Cameco’s (CCO-T) so costs are much higher. The events in the uranium market have obviously affected this company and their numbers have been very poor. Japan recently stated that they will restart their reactors, which has been good news for uranium. Thinks we are at the bottom of the uranium cycle so she would not be selling any uranium stocks.

It is still in a downtrend. There is a chance of a bit of a rally but generally speaking the stock is not in an uptrend whatsoever.

Ranks 500 out of 700 stocks in his database. Expected that there will be no earnings, virtually breakeven for 2013, but expecting $.09 in June/15..

Doesn’t cover this one but he is a little cautious on the uranium sector. With a 3-4 year time horizon, he felt this would be one of the better ones in the sector. However, they then came along and really messed up. They were planning on selling a part of a mine and basically guaranteed its sale. All of a sudden that fell apart and then decided to raise money which really diluted shareholders.

Got washed out yesterday because they announced a delay in timing of their strategy. They got an unsolicited bid on an interest in a flagship asset. He is a bull on uranium.

He is constructive on the uranium space. Supply/demand fundamentals are favourable. Two operating mines in Africa.

Is the second largest stand-alone uranium producer. They are growing. They are looking to rein in costs and manage expectations. We are off the bottom in the uranium space. "The question is when uranium goes up".

Surprised that it hadn’t been taken over. She no longer owns because it is a higher risk name. Had some issues delivering on production. Uranium is an out of favour sector.

There are 3 major uranium producers including Uranium One (UUU-T) (in the process of being taken out) and Cameco (CCO-T). Price of uranium has gone up a little bit and there is a bit more optimism, particularly about Japan building nuclear power reactors again. He would stick with big producers that are well financed such as Cameco if you are inclined to own a uranium producer. 1.9% dividend.

Thinks the uranium stocks are starting to turn. Juniors haven’t really started moving yet. He likes these junior/midsized plays. (See Top Picks.)

In the short run there are challenges but eventually we have to use it. There is some value in these stocks. For a 3-5 year horizon it will be volatile. The bottom is not in yet. A good long term winner.

Interesting thing is that it could get acquired but it is less likely now. They need a financial partner more. It could happen by joint venture, or sell part of their existing mines to monazite it. It’s up for grabs. She feels it will not get taken over. You need better balance sheet and better execution.