RE:RE:RE:Uranium Bull MarketDreaminthedream wrote:
I appreciate you patience ssthv but if the uranium bull market does not start before 2020, FCU shareholders are going to be in serious trouble. FCU will be out of money LONG BEFORE THEN.
I have been through this kind of situation before. When the cash runs out, the company becomes desperate. It will mean a SHARE CONSOLIDATION and new financing. Or it will be that CGN steps in and invests more money and takes a bigger share of the company.
Either way, there is dilution. Shareholders always lose in these scenarios. Management will have done quite well but shareholders will be left holding the bag.
So a price increase in Uranium that is 4 years away is useless to FCU shareholders.
To be honest with you, things do not look good. 2018 looks a lot like 2017. Time is NOT on the side of FCU shareholders.
Totally agree with you and it should make you think of your nuclear investing strategy. Fcu and nxe are in my portfolio but far from being my top picks. I look for permitted company that went to sleep when Fukushima killed the market. If the bull market was going to start this year, fcu would not be able to sign long term contracts. Permitting an uranium mine is not an easy task. Look at Cigar Lake, more than 20 years went by between the discovery and start of commercial production. Not the same situation, but it gives am idea. Mike Alkin's top pic is 'uranium energy corp', they reduced production and are waiting. Energy fuels is in the same situation, and they have vanadium. Uex is a start up but are drilling for cobalt at the very moment. Gxu are fully permitted, they stopped drilling so they preserve cash and are looking for debt financing, less dilution...