Paladin Resources – Onward and Upward for Paladin

by JDH on April 14, 2007

PDN.TO Paladin Resources Limited continues onward and upward:


A new high intra-day high was reached at $9.99 on April 10. (I find it fascinating that the stock went to $9.99 but not $10; obviously $10 is a psychological barrier; it’s only one cent higher than $9.99, but it makes a big difference). Paladin closed Friday at $9.45.

The RSI got up to but not through the 70 level, before falling back to 58 on Friday. A drop below $9 would worry me, but for now, I’m not concerned.

The big news of course is what will happen with Paladin, Summit, and politics. Paladin has raised it’s offer for Summit, so it is now likely the take-over will happen, in partnership with Areva. A good explanation of where we are at can be found at Bloomberg.

Therefore, for the next few weeks, barring a collapse in Paladin, I’m holding. I continue to have 8% of my portfolio in Paladin, which is the highest allocation I am currently placing on any holding, so I think it’s still a winner.