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I guess you like me were told by the futurists back 10 years ago that PDN was going to go ballistic. Well they were right and it did:
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In 2007 it got within a smidgin of $10. Now my calculator is not big enough to count that sort of percentage gain – plus I don’t want to remind myself that I was not on board.
But by 2007 I had learnt through the very practical ‘School of hard knocks’ lesson, not to get on board when a stock runs like that. Because this is what happened later:
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Down as low as $2 odd.
So if it was cheap back in 2006 before its run is it cheap now?
Uranium is always on the nose. But the recent nuclear disasters in Japan, following the catastrophic earth quake and tsunami, merely brought it to the front pages. And at the time I heard a USA nuclear expert say that it would not happen in his country because they have gone ‘x’ years without a disaster. If it was me, I would be battening down some hatches because based on the law of probability, somewhere in the USA, could be due for a freakish accident. Hopefully not, but we live in a freakish world.
So where to PDN?
What we are seeing is merely another few lambs coming in for the slaughter:
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Some think it is now a bargain but they don’t know Elliott, who tells us what we are seeing, is the calm before the storm. Why does it happen like this? Well as the stock recovers a little, and that is all it has been, sellers come in. You can see that the big volume days in mid March were days when the stocks was being sold down with only minor volume buying into the wave four. In the last couple of days that meager volume has run out of steam. Wait for it, the sellers are getting ready.
That’s the way it happens. Watch PDN get smashed again – by the big boys – in the coming weeks.
Enjoy the ride
Tom Scollon
Chief Analyst |