RE:Current valuation for EUO makes it very attractivearctan2x wrote: I've been following this company for a couple of years, made some successful in&out, think that current valuation is by far the best i've seen so far for new investors to join in. People throw the towel on this one... they could be right in the long term but for now they got to much cash to sit on and more to come to just think they will blow it all in salaries and consultant imo. I think Mr.Wood will come out with something and with the lowering cost going on in subsidiairies, this will help preserve cash. People are so negative about this stock that any news with some positivity in it could make it jump 50% or more..
At this point, minimum downside risk, very interesting upside possibilities.
I thought so as well, a month or so ago when I got back into it after being out for about half a year. I saw it trading below the net cash reported in the last quarterly update. I thought that was a great opportunity to get in and have it get pushed back over the net cash line again, as it always did every time it fell below that line in the 18 months or so I was in it previously. However that didn't happen and I gave up waiting for someone to push it higher. We can all think it is undervalued here, well some of us can, but until someone with deep enough pockets decides to push it up through the 5c wall (4.5c now), it really doesn't matter what we think.
I got out because after no positive price action for a month, it started to feel like people were to afraid of what the next quarterly results might show. It sure didn't seem like anyone had any optimism about it, at least based on the trading for the past seven weeks. Now we are getting close to the next quarterly release, and as it approaches, do you think people will be wanting to buy or sell? I'm personally expecting another loss and I have no idea how big it will be. Keep in mind that the Q1 loss, as large as it was, was partially offset by the January semi-annual $750k royalty payment. The next payment doesn't hit the books until Q3. Where does that leave the Q2 numbers? I really don't know.
If it continues to trade below net cash, and continues to ignore the NPV of the future royalty payments due from SICPA, then your guess is as good as mine as to where it might wind up.
I suppose I should thank TD for preventing me from gambling any further on this stock. It was very good to me on the long walk down the stairs, but at this point, it feels like someone has turned the lights off, so I'm happy to be leaving what feels like a dangerous gamble behind.
That said, I really do wish the rest of the longs the best of luck with it. Anything could still happen in the next month. A takeover offer, if it arrives, should still be for roughly double the current share price, at least in my humble opinion.
Good luck to all longs. I can't look away. I'll be watching it to the end. I really hope it ends in a takeover offer.
Cheers