Increased Risk in Paladin Resources, Uranium One Better Poised

I decided to take profits and close my trade in Paladin Resources (PALAF.PK) yesterday at a price of $8.40.

I decided to make the move came after Summit Resources revealed that Areva had taken a 9% stake in the company with the option to increase it to $18. Having seen what happened to shares of Mittal Steel last summer in their hostile takeover, I am afraid that Paladin is going to try to launch a further hostile bid, but will now have to compete for Areva and will have to pay much higher prices because of this development.

Therefore, this has increased the risk component in Paladin over the short term, and I no longer feel that Paladin represents the best play in the sector. sxr Uranium One (SXRFF.PK), which already got its target in acquiring UrAsia (UAEYF.PK), looks to me to have better near term prospects. I recently bought a stake in SXR, but may look to increase it in the coming days.

PALAF/SXRFF 1-yr comparison chart

Comments

[omooc]

Some of your stocks have .PK as suffix. My online broker does seem able to provide a quote. What next?