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Bloomberg's comments make for an interesting read :
http://www.bloomberg.com/apps/news?pid=20601081&sid=aDr1FA4iRa2A&refer=australia
Summit controls the largest uranium resource in Australia of any company other than BHP Billiton Ltd. and Rio Tinto Group. Uranium prices have more than doubled in the past 12 months, spurred by rising demand from utilities for use in power plants that emit lower carbon emissions than coal-fired generators.
``Strategically it is a very important deposit,'' said Stephen Bartrop, a resources analyst at Stock Resource in Sydney. ``You've got a lot of uranium hopefuls across Australia but you have very few material deposits.''
``The bid from Paladin was a necessary response if they were going to have any chance of getting there,'' said Warwick Grigor, managing director of Far East Capital Ltd. in Sydney. ``The most important thing to consider for a Summit shareholder is that this bull market in uranium stocks is only just beginning, and Paladin is not wanting to make a takeover bid for Summit because it's expensive, they want to buy it because it's cheap.''
Paladin stock is the world's best performer in the Morgan Stanley Capital International World Index over the past five years. The stock has made a return of 35,829 percent in that period, 10 times the next best performer, Lundin Petroleum AB.
``The question then is which stock is going to perform better, Paladin or Summit?'' Grigor said. ``You might be tempted to say there's greater leverage with Summit.''
http://www.bloomberg.com/apps/news?pid=20601081&sid=aDr1FA4iRa2A&refer=australia
Summit controls the largest uranium resource in Australia of any company other than BHP Billiton Ltd. and Rio Tinto Group. Uranium prices have more than doubled in the past 12 months, spurred by rising demand from utilities for use in power plants that emit lower carbon emissions than coal-fired generators.
``Strategically it is a very important deposit,'' said Stephen Bartrop, a resources analyst at Stock Resource in Sydney. ``You've got a lot of uranium hopefuls across Australia but you have very few material deposits.''
``The bid from Paladin was a necessary response if they were going to have any chance of getting there,'' said Warwick Grigor, managing director of Far East Capital Ltd. in Sydney. ``The most important thing to consider for a Summit shareholder is that this bull market in uranium stocks is only just beginning, and Paladin is not wanting to make a takeover bid for Summit because it's expensive, they want to buy it because it's cheap.''
Paladin stock is the world's best performer in the Morgan Stanley Capital International World Index over the past five years. The stock has made a return of 35,829 percent in that period, 10 times the next best performer, Lundin Petroleum AB.
``The question then is which stock is going to perform better, Paladin or Summit?'' Grigor said. ``You might be tempted to say there's greater leverage with Summit.''