Valuing the Gold Report on Paladin

Posted by webmaster in Paladin, Uranium Stocks on 04 4th, 2009 | no responses

Recently the Gold Report over at Seeking Alpha took a look at the Uranium industry. What did they say and were they on the money?

Let’s dive right in and take a look at our first quote from the article;

TGR: What are some stocks that you like in the uranium space?
GT: I like Paladin Energy Ltd. (PALAF.PK), it’s a growth company. They’re going to be building production up quite rapidly over the next several years. They really just started, and this year they should do about 2.9 million pounds of uranium production. It should be 6.8 million pounds by 2011 and about 14 million pounds by 2014. It’s one of those Australian deposits that I believe will be coming on stream.

It’s hard to argue with this comment but one does have to be cautious when it comes to Paladin. Paladin has been the “hot pick” for a few years now and has dropped at a higher percentage rate than most of its competitors in the Uranium space. Shares are currently less than a third of the yearly high and volume of late has been extremely low (about 58,500 average this past week). Here’s the next set of quotes;

TGR: Because the government will say it’s all right to add another mine.
GT: Yes, I’m sure they will.
TGR: So you’re counting on that.
GT: There’s nothing like a worldwide downturn to open up governments’ minds. I like the growth of that company.

Growth at Paladin has always been the story. The question is can they deliver growth at a profitable rate that can cantipule the stock back into past ranges. Over the past month Paladin has been a hot item, hitting a low of $1.71 on March 5th and closing at $2.68 on April 3rd. In the short-term can Paladin have another 50%+ month or will it begin to level out. This should be an interesting stock for traders and technical analysis followers over the course of the next month.