Conclusion: We continue to recommend Hathor as a BUY with a $5.60 target price. We would not expect investors to tender their shares to an offer at this level.

A lot can happen between now and 5.60, not all of it related to the uranium market. Very uncertain times right now. With an 83% gain staring me in the face I'd be a fool not to sell, and so I did.

Good luck to anyone hanging in for a bidding war, but frankly I don't see it. Denison doesn't haven't the cash, and who wants an all-shares buyout, even at an implied higher price? Former ARU investors will understand the concept. Areva, the other contender, would have to jump through some foreign ownership hoops. Not to say they couldn't do it, but like I said before, this is a very small sector and I suspect (although I can't prove it) that the majors have informally divided the pie amongst themselves. I know this violates antitrust law, but what else is new?

Another factor to consider: Hathor's been slammed not once, but twice. First in 2008/9 then later with the accident in Japan. So, how many original shareholders are left, and how many (like myself) caught the falling knife and now have a nice gain but not much long term commitment? I don't know the answer, but it's something to think about over the weekend.

As a general rule of trading I try to leave something for the next guy, even if the next guy is an arb. Arbs have to eat too, and hanging in for an extra 10 or 15% doesn't have the same risk/reward profile for me as buying the panic bottom.

So again, good luck to all remaining longs. I'm sure there's lots more uranium to be found or Cameco wouldn't have moved so soon, and Hathor wouldn't be resisting.

ebear