UEX Corp T.UEX

RE:RE:anyone heard of "warrant stripping"????

[mangoe]

invest4fun wrote: I didn't get any valid feedback... :(

From what I understand, "warrant stripping" is done by big brokerages. What they do is buy the units from an IPO or private placement when the units consist of both a common share and a warrant. If they are convinced the price of the common shares will go up, they sell the common share at par or at a profit ... which means they have the warrants for free... and then hold onto the warrants to be exercised at a later date when the price of the stock is up.

I think this may be what is going on with UEX.

There were 72 million units issued in the past private placement in September of last year. The units were rpiced at $0.29. The units consisted of one common share and one half warrant to purchase a common share at $0.40. Recall that Sprott led this PP.

So the BIg Boys got a whole whack of UEX shares at a very reasonable $0.29 which they have been selling off into the market. They aren't selling them in one go, because that would drive the stock price down. So they are "feathering" them out in small bits. That may be what the single board lot trades are all about. They don't need to let the price go up at this point in time as anything over $0.29 is "gravy". They will still have the $0.40 warrants in hand which they can exercise up until September 2024.The weaker hands may have exercised some of these warrants and sold at something a bit over $0.40... because just want to make their bit of profit, but I think most are likely holding onto those warrants. Once all the selling of the $0.29 shares is done (72 million shares!!!) they will let it fly and then cash in with their warrants. I stress again that Sprott led the PP deal... and they have set a target price of $1.15 on UEX. It all makes sense to me and explains this rut around $0.40.

Thoughts??

Serious comments only puleez!

Yep! it was mentioned a few  days ago when we got stuck in this 40 cents price range, that some of the warrants are being exercised in this 40 cents price range,but some posters that does not know what is going on think that something is wrong with UEX, & the company has gotton worse over the last 15 years while a lot of companies have surpassed UEX. ( nope! UEX has almost doubled its uranium deposit over the last 15 years, it is a much better company now).

UEX has more uranium than some of the companies that is trading at much higher price than UEX, & Investors or the streets does not hate UEX, all those warrants that is being exercised in the 40 cents range is being bought up, the buyers will not sell these at 27 cents a share.

Some Tech Analyst would say this chop chop trading pattern is a nice base building for the next leg up. Some warrants being exercised in this 40 cents price range is the reason we are in this trading pattern for a while now.