Friday, March 18, 2011

More Uranium Miners Disasters, IPOs and Takeovers Down The Drain, Risks, Opportunities

Uranium miners have fallen drastically in recent days followng the Japansese disaster. However, this may also present opportunities. We are not just talking about liking uranium in general.

Bloomberg reports that miners are have takeover offers are being traded well below their offer values.

"Kalahan traded 28 percent below the offer of 290 pence a share that China Guangdong Nuclear Power Group Co., the nation’s second-largest reactor builder, made last week, implying a 39 percent gain",

Mantra Resources, from Australia, also fell 28 percent yesterday. However, here is the reason why none of these profits are sure deals.  Rosatom Corp. from is seeking to renegotiate its bid.

"Analysts still project uranium stocks will rise more than 80 percent on average in the coming year, the data show".

"“The risks associated with these types of transactions are going to be much higher relative to other deals out there,” said Sachin Shah, a special situations and merger arbitrage strategist at Capstone Global Markets LLC in New York. “Because the circumstances are without resolution in the plant in Japan, the potential buyers are likely not only to take a wait-and-see approach, but they’re trying to understand what ramifications they will have with the current operations in their countries.”

Stumble Upon Toolbar

No comments:

Financial TV

Blog Archive

// adding Google analytics