The Sunday Post - PLS New Level and the Exporation DollarsThe Sunday Post – A New Level and the Exporation Dollars
PLS Attention to a New Level As Fission is not only proving up a great deposit, but it has driven excitement in not only all the areas plays but, in the sector itself. On one the most traded stocks on the venture consistently over the last year, the constant news flow, and such large coverage by analysts and institutions, it is now a fairly well known story in the exploration business.
The convergence of several news items,
stratospheric drill results, and industry news has now pushed the focus of this company to a whole new level. Not only that… almost every uranium stock, whether it be a producer, near term producer, or explorer has had their stock price increase substantially over the last week. Companies not only operating in Canada but the US, and around the world. Truly incredible to see. I would say it was many different things that erupted into a perfect storm, that brought in a large amount of capital.
These are the just some of the factors that built that storm:
- Second best drill hole ever drilled the basin by Fission, using the standard grade thickness formula (was shocked how good this was)
- Halt of the Fission stock to announce along with a coincidental halt of Nexgen energy stock at the same time.
- Nexgen’s discovery hole along the same trend line as the main PLS discovery, and subsequent doubling of the stock price immediately following the resumption of trading
- Cameco’s recent divesting of other holdings in nuclear, specifically stated to use for their main uranium business
- Several News articles, including Bloomberg on consolidation and the restart of reactors in Japan
- Other publications and interviews discussing Goldman Sacks divesting of its uranium commodity trading and what their practices in that business have been in the past years.
- Another incredible hole by Denison, although not as good as the Fission holr, extremely impressive non the less
Many stocks went up more the others, many just driven by speculation, and others due to the fact that many uranium stocks were depressed in valuation. When large amounts of money move in there is no holding back a stock, even if some trading practices try.
Exploration Dollars and the Next Discovery I suspect that some investors will make more money on the speculation of the area plays if they time the trade perfectly, or lose a great amount if they don’t in the short term. If they are in before a major find, that speaks for itself. Still worth it for many, depending on their risk tolerance, and the deployment of the capital.
One thing though is a huge difference is raising money to find or expand a deposit. Fissions market cap is now listed as 446 million, so when they need to raise more money it will have a small amount of dilution affect to the company. They also have the pounds in the ground to back it up. If they raise money under similar conditions as the last capital raise, even more so. This all depends on when it would be done, but they are in a great position to dictate when that is. It could have a dilution of as little as 3-5% if they raised around 20 million. The exporation done on a property, the more understanding you have of the geology, and increases the accuracy of targets.
An area play with a tiny market cap, along with full warrants, would dilute a company on a high percentage basis, depending on various scenarios and whether they have had successes before the go to the market. Some area plays have almost no money, some enough for small programs, and some for medium sized ones this year. Although all will have to go to the market again at some point, that’s the nature of the business. Some I like for a good chance. One thing, I am fairly certain there are many more good deposits to find in this part of the basin, who finds them remains to be seen. I also think though that Fission has as good a chance or better to find the next one before many others will, and on the same property.
On the Boards As usual with such a frenzy of trading and share price increases, it has created the usual frenzy of posting. Good posts, terrible posts, spamming, trolling, competition and everything else you expect.... stockhouse
Going Forward The more success with drilling and share price increases of the basin companies, it will only create more interest of the peers. Any discovery near our property also increases opportunities for more discoveries on PLS. Whenever a buyout of one of the companies happens this year or next, it will surely create a ripple effect for the alternative candidates. In my opinion the pressure is on the buyers interested, not to wait to long. I want them to wait, to find more rock! As stated in previous posts, who controls PLS will control the area.
Cheers
Presclubs
(Disclosure: I hold a long position in FCU. I am not a broker, professional analyst, or work for a financial intuition. I am a retail investor. I do not receive commissions or compensation for posting. I have a group of friends who also are invested, and post on this site for their benefit and any other investors that find it relevant. It’s a hobby, enjoy it, and invest in this stock because of my belief of large potential returns with low risks. These are my personal opinions; investors should do their own due diligence on what to invest in. Team PLS-2.1m)