Balanced Portfolio Recommendation: Take Profit – 1/2 of Paladin Energy (PDN)

Sector: Uranium

On Feb 8^th we switched to the safety of the URNM ETF, however since then we have seen the likes of Cameco and Kazatomprom deliver disappointing results, while Paladin has remained on schedule to first production

Now the risk has lessened in Paladin, we see a switch back from the ETF into the single stock exposure as the better value, around 2-3% cheaper than where we switched in February

Update Recommendation

1. Take Profit on Half of the Position:

   • Action: Sell 50% of our current holdings in Paladin Energy.
   • Rationale: This action secures a solid 25% profit on half of our investment, aligning with our initial risk management and profit-taking strategy. By locking in gains, we protect our portfolio against unforeseen market volatilities while capitalizing on our successful positioning.
   • Execution: Place a limit order at the current market price to ensure we capitalize on the attained target level.

2. Maintain a Trailing Position:

   • Action: Retain the remaining 50% of our holdings in Paladin Energy.
   • Rationale: The ongoing strength in the uranium market, partly driven by geopolitical factors and supply constraints, suggests potential for further price appreciation. Maintaining a position allows us to benefit from continued upward momentum.