I have spent some time looking at long term forecasts for uranium supply and demand. The conclusions of the reports I read suggest that demand is likely to exceed supply in the not too distant future. While long range forecasting is often an exercise in looking stupid, given that uranium has taken a beating in recent times, I decided to purchase some shares in Paladin (ASX: PDN). Based on today's fundamentals, PDN is not something I would normally look at (I prefer companies that actually make money now), but if the forecasts are correct (or enough people believe them to be correct), then the shares could go for a nice run.
This is all pretty speculative, so I have kept the investment small - basically the dividends that have accumulated from my other Australian shares over the last couple of years.
I paid AUD1.03 per share.
I've been reading your blog for a while, you've been doing a lot of speculation recently. I kind of retired from chasing stocks that have gone up.
I also find it really hard to invest in the Australia share market. It seems like it is just completely different compared to H shares and it becomes a very big pain to start studying it. I think I will stick the H shares and master it even more before I get serious about another stock exchange.
BTW, do you invest in ASX through a broker in HK or an Australian one? Do you have to pay capital gains tax in Australia?
I have only made two investments in recent months which could be regarded as "speculative" - Radford Capital (which was purchased at a huge discount to its NAV) and Paladin (which is more an investment in a recovery in the price of uranium and sentiment than an investment in the company). The position in Radford was closed out after only a few days. I'm happy to keep a small amount of money invested in speculative investments - even if I lost the lot it would not be enough to affect my standard of living.
I am comfortable investing in Au/NZ as I used to live there. I also like having some money outside HK/China and denominated in currencies that I will be spending in my retirement.
I use a local broker that I have known for many years. As a non-resident, I am not subject to capital gains tax.
I initially thought you meant
shares in the HK-listed Paladin!
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