Lightning Analysis - PDN - Paladin Energy

Is Uranium undervalued?

According to this article:
Uranium on rise as dust settles on Fukushima
some of the analysts certainly think so. The article also mentioned a couple of Uranium companies - a good starting point for further analysis.

Anyway, this brief analysis looks at Paladin Energy. Looking purely on technicals, there is a slight indication that it is starting to turn up. The confirmation would be if the share prices break out the $1.90 resistance level.

However, looking at the fundamentals, PDN is making losses and has a high gearing ratio. It is also not able to cover interest payments from income alone. However it is a very attractive speculation, hoping that Uranium in general will recover and also due to shortage of supply. PDN is currently trading very close to Net Tangible Asset value and also Book Value.  Once again, wait for the break out at 1.90.



                                 1-Jun-09 1-Jun-10 1-Jun-11
 Net Interest Cover      -0.08     -0.32      -0.75
 Net Gearing (%)            82.4      39.9     44.4
 Debt/Equity (%)           92.9        76.3     53.1
 NTA                            1.06        1.4       1.49
 Revenues (m)              138.2      237.4    49.1
Operating margin (%)     6.9        4           -2.9
Net Profit Before Abnormals (m)  92.7 -62.1 -76.6
Net Profit (m)                 -591.8  -62.1    -76.6
Long term debt (m)         705     800.4     629.3


If you wish to look into other Uranium companies, here is a list to start from

PDN	Paladin Energy Ltd.	1.78	+0.04	2.59%		1.49B
KAH	Kalahari Minerals Plc	243.50	+0.25	0.10%		610.61M
EME	Energy Metals Limited	0.395	+0.010	2.60%		60.74M
RGU	Regalpoint Resources Ltd	0.075	0.000	0.00%		5.07M
SMM	Summit Resources Ltd (...	1.61	-0.04	-2.42%		350.95M
CXU	Cauldron Energy Ltd	0.180	0.000	0.00%		17.33M
AZH	Azimuth Resources Limited	0.890	0.000	0.00%		340.26M
AEE	Aura Energy Limited	0.195	+0.005	2.63%		31.12M
UUL	United Uranium Ltd	0.080	-0.003	-3.61%		3.44M
NTU	Northern Uranium Limited	0.445	-0.010	-2.20%		78.08M
BLZ	Blaze International Ltd.	0.002	0.000	0.00%		1.48M