RE: RE: RE: RE: RE: RE: RE: RE: Uranium mine to ma I think the biggest problem with the UUU story is that the investment community in the western world has become obsessed with playing games with company stocks in the face of fundamentals. Another example of excessive greed. UUU was, potentially, a great thing. And it was not valued appropriately in Canada's market place. The Russians have made that abundantly clear with their actions.
There was much talk of overpaying for Mantra and shareholder revolts on that issue etc. The Russians made it clear that they were taking a long term view when they took their initial stake in the company and a platform was building for some potentially great things. The valuation of Mantra changed after Fukushima but most longs here believe that this was a "blip in the road." But western capital markets simply did not buy in.
We generally do not invest these days. We trade. Short term. We view shorting a stock and promoting the short (in the face of good fundamentals) smart investing. It is getting to the point that a company is ill advised to release good news because it will surely lead to share price destruction. So they have said "f-U" to the western markets and our manipulative ways and have picked up their toys and gone home. What is so tragic about this whole mess is that the Russians have really beat us at our own game.
Everyone on this board (and the market generally) has figured out that this company should have been a very valuable one but the market basically snubbed it and chose to value it at a discount to companies that operate at a nearly perpetual loss. This company was an investment for the Russians and they intend to make money with their investment. In their position, they could either make that money from a rising share price or from the mining itself. Since there clearly was iffy action on the share price, they have done what most here wish they could do. It sucks but that is capitalism.
Canada now has one of the worst performing stock markets in the world and the devaluation seems to continue. Most say that it is not supported on fundamental grounds but unless people wake up to some of the very real value here and value it properly, China, Korea and other resource-hungry players are going to do this type of thing again and again.
Where will it end? Why should Russia value us if we will not value ourselves?