RE:RE:RE:RE:RE:RE:RE:RE:RE:Uranium Price Depressed, More Downside Could Soon FollowLook, here's the deal the way I see it. NXE and CCO are (were) the easy shorts at or above 2.40 and 12 dollars respectively for different reasons.
If this was just a market sediment issue with CCO I would agree and load up at 10 bucks, take my divy, and look back in three years as a no brainer. Other than this tax issue (and lack of suitable provisioning) and the cost to get their last mine up and running, the management team are not bad, they are decent. But I disagree very much that a bad CRA judgement is priced in. I've had a few really smart people look at the numbers and they all agree 10 bucks will look good if they owe 2-3 billion. It will take their debt level from 1.9 billion presently to 4 to 5 billion and their options to get that money are all very poor. This is gambling not investing. And as I'm not buying, at around 10 bucks I will cover as there is no need to gamble on the decision the other way as if they get a half billion dollar deal I believe the stock price goes up as they will then have no issues making it through this down turn (and I will pour money into this company if that was the case).
its unfortunate that the go to company in this sector is a gamble because at 18.00/lbs I have chosen my first couple of U stocks to invest in. At 15/lbs (if we get there) or going back above 21.50 and holding I will put the rest in.
Just one dumb guys opinion