PDN - Paladin Energy

[purple]

Re: PDN - Paladin Resources

Sounds like buying SMM before the forecast policy change is a very good move by PDN now why did PDN share price go backward today?

shareholders who thought it might not be a good buy. usually the case for takeovers. when ZFX bid for Wolfden, it dropped also due to shareholders thinking it was too expensive an asset to acquire.

nevertheless, PDN's upward trend is too strong. a slight dip below $10 and buyers quickly snapped it up again, it's back up above $10.

PDN's boss John Borshoff is moving quickly to strengthen PDN's share of the market, and I applaud him..

 

[Fab]

Re: PDN - Paladin Resources

shareholders who thought it might not be a good buy. usually the case for takeovers. when ZFX bid for Wolfden, it dropped also due to shareholders thinking it was too expensive an asset to acquire.

nevertheless, PDN's upward trend is too strong. a slight dip below $10 and buyers quickly snapped it up again, it's back up above $10.

PDN's boss John Borshoff is moving quickly to strengthen PDN's share of the market, and I applaud him..

I tend to agree with this comments. John Borshoff seems to know what is on about and U is for a sure winner for many years to come

 

[reece55]

Re: PDN - Paladin Resources

Sounds like buying SMM before the forecast policy change is a very good move by PDN now why did PDN share price go backward today?

Fab
It is not unusual for a Company making an offer for another company to decrease in value if the market isn't keen on the logic for the acquisition. Have a look at OXR - AGC.

The other item is that the scrip offer is about 20% of the market cap of PDN. So if the acquisition were viewed in the market place as not value accretive, there is a lot of dilution for existing shareholders in PDN.

My opinion - they have used an overpriced scrip (and in my view, a mega mega overpriced scrip) to buy an even more overpriced asset that will take years upon years to pay off. I mean the acquisition value is almost $1 Bil!!!!

However, like Kennas, I said PDN was expensive @ 5.5~, so who knows how long this madness will continue.

Cheers

 

[Freeballinginawetsuit]

Re: PDN - Paladin Resources

Fab
It is not unusual for a Company making an offer for another company to decrease in value if the market isn't keen on the logic for the acquisition. Have a look at OXR - AGC.

The other item is that the scrip offer is about 20% of the market cap of PDN. So if the acquisition were viewed in the market place as not value accretive, there is a lot of dilution for existing shareholders in PDN.

My opinion - they have used an overpriced scrip (and in my view, a mega mega overpriced scrip) to buy an even more overpriced asset that will take years upon years to pay off. I mean the acquisition value is almost $1 Bil!!!!

However, like Kennas, I said PDN was expensive @ 5.5~, so who knows how long this madness will continue.

Cheers

It could also be considered that PDN is as overvalued as the scrip bid for SMM, all relative really. Maybe PDN know more than we do about SMM's real worth or maybe hype in the sector has expanded to 'U' company management.

IMO PDN's offer represents a premium bid for SMM and realistically they are doing fine with LH and K in the short term and should have let the 'U' market settle on the explorers for a while, they have enough on their plate and are the box seat player ATM.

 

[reece55]

Re: PDN - Paladin Resources

It could also be considered that PDN is as overvalued as the scrip bid for SMM, all relative really. Maybe PDN know more than we do about SMM's real worth or maybe hype in the sector has expanded to 'U' company management.

IMO PDN's offer represents a premium bid for SMM and realistically they are doing fine with LH and K in the short term and should have let the 'U' market settle on the explorers for a while, they have enough on their plate and are the box seat player ATM.

Good points freeball........

That is really my assessment - I mean, before any of the cash flow settles from LH and K is coming on board, why would they go and do this, IMO it isn't a good strategic decision.............

Whilst they may see something in SMM that we don't, there would definitely be an element of U fever from management here - I reckon they are doing it to be one of the first movers on consolidation in the sector. I am sure thats how their advisers would have sold it to them anyway!

However, I do stress that in the end, if everything comes on board (i.e. continued rise in Uranium price, change in mine policy, stock prices that just keep rising) it could be excellent for all concerned. But that is an awful lot of "ifs".

Cheers

 

[Freeballinginawetsuit]

Re: PDN - Paladin Resources

Good points freeball........

That is really my assessment - I mean, before any of the cash flow settles from LH and K is coming on board, why would they go and do this, IMO it isn't a good strategic decision.............

Whilst they may see something in SMM that we don't, there would definitely be an element of U fever from management here - I reckon they are doing it to be one of the first movers on consolidation in the sector. I am sure thats how their advisers would have sold it to them anyway!

However, I do stress that in the end, if everything comes on board (i.e. continued rise in Uranium price, change in mine policy, stock prices that just keep rising) it could be excellent for all concerned. But that is an awful lot of "ifs".

Cheers

I totally agree with your points on PDN from a trading perspective Reece, long term for PDN the 'if' scenario seems to be their midas touch.

Digressing a bit, my original intro to PDN came from my Father. A great bloke who was the largest influence on my life, views, perceptions etc. Dad had a business up North during BHP and HI's early days called standard telephone communications (STC) which was responsable for all the two way radio setups at Tom Price, Newman,Headland, Karatha,Shay Gap in the early days in the Jap boom.

I remember particularily most of Dads views on business/commodities etc. He used to rattle on about lots of things to me when I was only a young un. A classic would be trying to explain how phones would one day be mobile like two way's bouncing the signal of base stations in a network spanning the country. Lol.....it happened .

Dad was an investor in the stockmarket,trading and long term holds. As an immigrant from Europe he was always a proponent of Nuclear Power/Long term energy concerns worldwide etc. Dad died a few years back with Mum left with the property and usual things, my sister and I were left with his shares. My sister has long sold hers and put to good use on her home etc and schooling for her kids. I was always a worker (had some bucks) and had little need to cash in dads shares.........moreso for the fact that they were something that reminded me of him and his decisions....a memory.

Most of the shares were blue chips, a few were trading punts.......PDN being one. Now over the past 3 years since trading/investing myself I have traded PDN quite a few times......for modest gains, but never as much as just the sit and hold mentality would have achieved !.

Anyway I still have dads original shares in PDN, there worth more than any share or singular physical asset I own (by a long shot)......dad was right . I often joke with my Sis about it......she dosen't see the humorous side though.

Anyway who knows with PDN what the future beholds, but if the past is anything to go by its bright, Borshof is a man with foresight and excellant business savy!.

 

[Fab]

Re: PDN - Paladin Resources

I totally agree with your points on PDN from a trading perspective Reece, long term for PDN the 'if' scenario seems to be their midas touch.

Digressing a bit, my original intro to PDN came from my Father. A great bloke who was the largest influence on my life, views, perceptions etc. Dad had a business up North during BHP and HI's early days called standard telephone communications (STC) which was responsable for all the two way radio setups at Tom Price, Newman,Headland, Karatha,Shay Gap in the early days in the Jap boom.

I remember particularily most of Dads views on business/commodities etc. He used to rattle on about lots of things to me when I was only a young un. A classic would be trying to explain how phones would one day be mobile like two way's bouncing the signal of base stations in a network spanning the country. Lol.....it happened .

Dad was an investor in the stockmarket,trading and long term holds. As an immigrant from Europe he was always a proponent of Nuclear Power/Long term energy concerns worldwide etc. Dad died a few years back with Mum left with the property and usual things, my sister and I were left with his shares. My sister has long sold hers and put to good use on her home etc and schooling for her kids. I was always a worker (had some bucks) and had little need to cash in dads shares.........moreso for the fact that they were something that reminded me of him and his decisions....a memory.

Most of the shares were blue chips, a few were trading punts.......PDN being one. Now over the past 3 years since trading/investing myself I have traded PDN quite a few times......for modest gains, but never as much as just the sit and hold mentality would have achieved !.

Anyway I still have dads original shares in PDN, there worth more than any share or singular physical asset I own (by a long shot)......dad was right . I often joke with my Sis about it......she dosen't see the humorous side though.

Anyway who knows with PDN what the future beholds, but if the past is anything to go by its bright, Borshof is a man with foresight and excellant business savy!.

I agree with regards to Borshof in the meantime PDN is being dumped on the TSX .-6% as I speak

 

[lancer]

Re: PDN - Paladin Resources

-6%? I wish, ended up down 10%....And that was one that wasnt too harsh compared to some of my other ones...

 

[nizar]

Re: PDN - Paladin Resources

PDN getting bought up again now.
Making new highs for the day.

Time to get in?

 

[Freeballinginawetsuit]

Re: PDN - Paladin Resources

I'll sit and watch for a while yet Nizar, plenty of room for crew still to cut clean profits on this one.

Support around 7.30 ish from past price action

 

[Halba]

Re: PDN - Paladin Resources

Paladin will have to issue another 100million shares for SMM.

I wouldn't be buying this anytime soon.

 

[Caliente]

Re: PDN - Paladin Resources

Hey nizar. I did. One of the better bargains of the morning for my money.

 

[nizar]

Re: PDN - Paladin Resources

Hey nizar. I did. One of the better bargains of the morning for my money.

Nice one.
Your brave. But thats how you make money.

I bought PDN after May correction at $3.75 ($3.53 was the bottom). The rebound was great

I think every1 knows how well this rebounds now. Didnt stay under $9 for long this morning.

I wonder who was the champion that bought at $8.50.

 

[the barry]

Re: PDN - Paladin Resources

I got 8,000 at 8.60, boo yeah. Also bought 10 grands worth of indice calls when the market was 200 points down. Bring on the recovery!!! Makes up for the 30 percent loss in my portfolio, have a margin call level of 60, got to 59.80. Thank god for the bounce back.

 

[56gsa]

Re: PDN - Paladin Resources

In ST why buy pdn when u can buy pdn thru smm + have possible additional benefits....

scenarios (please add more):

PDN pull bid (PDN holders benefit relative to SMM)
PDN have to improve offer eg add cash payment (SMM holders benefit)
new bidder / white knight for SMM (SMM benefit)
PDN successful (PDN shares/cash? diluted by SMM issue => SMM benefit)

seems the odds are stacked in SMM holders favour in the ST?

LT of course PDN still a great buy at these levels imo

 

[Bush Trader]

Re: PDN - Paladin Resources

In ST why buy pdn when u can buy pdn thru smm + have possible additional benefits....

scenarios (please add more):

PDN pull bid (PDN holders benefit relative to SMM)
PDN have to improve offer eg add cash payment (SMM holders benefit)
new bidder / white knight for SMM (SMM benefit)
PDN successful (PDN shares/cash? diluted by SMM issue => SMM benefit)

seems the odds are stacked in SMM holders favour in the ST?

LT of course PDN still a great buy at these levels imo

Excellent point.

Cheers

 

[Fab]

Re: PDN - Paladin Resources

Excellent point.

Cheers

Indeed I have to say this is a good point.

 

[Fab]

Re: PDN - Paladin Resources

Excellent point.

Cheers

Indeed I have to say this is a good point

 

[Halba]

Re: PDN - Paladin Resources

56gsa:

on the negative

PDN bid lapses/SMM reject bid. SMM goes back to around $4.20.

PDN walks away, deciding not worth it to pursue. PDN finds other african projects and PDN SP goes to $12

SMM jorcs disappoint, and smm progresses slowly towards development(as per the slow bludgy aussie way) and price does little.

 

[56gsa]

Re: PDN - Paladin Resources

Halba

I would include your first two under my first point - we should also add that if the PDN conditions aren't met this will make bid lapse as well

although SMM rejecting the bid is a given - its about how PDN respond ... i don't they are just going to pack their bags

SMM JORCs not really relevant unless PDNs due diligence finds gross inaccuracies and they pull bid?

this still leaves things in SMM holders favour in ST

$12 for PDN in MT entirely possible with or without new takeover