Some are aligning SMM too much with PDN in the ratio: SMM=0.5...

Some are aligning SMM too much with PDN in the ratio: SMM=0.5 PDN.

I ignore that offer from PDN and tend to study SMM's fundamentals on its own:

http://hotcopper.com.au/post_thread.asp?fid=1&tid=435846#1592013

Six important items:
1. No matter, what economy, the demand for more nuclear power stations is to continue.
And with it the demand for Uranium be it for peaceful and/or military purposes.
2. The Cameco reports sofar point to deep seated problems which won't go away, quickly. That means that the supply of U is going to be much less than expected.
3. Therefore we can expect $100/lb sooner rather than later. Reports indicate there is a resistance to selling of spot U.
4. We can expect an updated SMM Jorc report before the end of March, IMHO.
5. The ALP conference in April.
6. The SMM court case involving PDN.

Items 3 and 4 ought to immediately raise SMM's share price IMHO. Items 1-2 could result in a higher than $100 U price, again beneficial to SMM.

So, I ignore any takeover offer at a too low a price, be it from a company which was overvalued and hence is moving down or any other.

So, if PDN does remove some SMM shares from the market, then, once the positives as given above make their influence felt, the loose shares could be gone and a much tighter SMM market and pricing could be the result.


Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.