EUROPEAN URANIUM RESOURCES LTD V.EUU

On the move at last

[Itsagusher]

On the back of this RNS from FTE:https://www.iii.co.uk/research/LSE:FTE/news/item/1346111/asx-trading-halt?context=LSE:FTE Trading continued on UK markets today with an increase of 53% in the value of the company's stock on volume of 460m shares across the two UK exchanges. EUU still significantly undervalued compared to FTE though and has a tiny amount of shares in issue by comparison, so we can expect a very large spike here when the resource upgrade is released imo.

[HobbyDigger2]

Hi all, in the summary of  2014 Forte has  stated a total amount of  issued shares 1.450 Billion, (see page 90)  https://www.forteenergy.com.au/files/files/441_FORTE_2014_AR_Final.pdf    - FTE  todays shareprice assuming  20 cents equal to  0,36cad .  EUU  shares FD  appr.  66million,  asuming a share price of  2 cents

[Itsagusher]

According to this NR: https://www.forteenergy.com.au/files/files/454_20141117_Appendix_03B_Darwin_Conversion.pdf FTE had 2.129 billion shares in issue at that time and has issued some more since then so I'll leave you to do the maths. The thing to remember is that all the expenditure on the Slovakian assets is now down to FTE so EUU has a free carry and should therefore be worth a lot more

[HobbyDigger2]

thanks Itsa.  FTE  halted  till  the 15th.  I dont know wether the Value of the eqity of  EUU  reflects the shareprice . And / or  is the low MC  of  EUU just because of the high  Risk at Kursikova ?  if not the SP  should be around  4$  compared to FTE . But that will not happen in my opinion. could be  20cents or

[Itsagusher]

You're welcome Hobby Digger. I haven't got time to crunch the numbers right now, but the way I see it is that all Uranium stocks were hammered into the ground in the downturn that followed Fukishima, then we had the year end tax loss selling, so they are generally trading at bargain basement prices and if you can find one that is about to put out a 'significant' resource upgrade

[HobbyDigger2]

thx very much for your reply, I m following a lot of  the Venture listet Cos for long time at the watch list I had Fission and all the other including the  REEs  as well.  I m aware of that program but the  Price for Uranium .... ??  I  doubt.  think we need couple of years for another strong upward. but who knows.  I had shares of  Fission till

[Itsagusher]

Ok some very simple maths then. FTE issued more stock today following a loan note conversion and now has 2.85 billion shares in issue. The current mid price is 0.21 pence in the UK which gives a market capitalisation (pre resource upgrade) of £5.9m. That equates to $10.7m. Divide that by the 65.9m EUU shares in issue and you get a price of 16.2 cents. Now to be fair FTE has other assets in

[HobbyDigger2]

ok, thanks for that. But I dont understand why EUU  is  on this low  for long time. The valuation hasnt changed since the JV  and  before. 

[Itsagusher]

It's a combination of things imo. First the sell down by Pinetree/ Iwentash, the poor sentiment in the sector until the recent recovery in the spot price, the year end tax selling and perhaps just being off the radar. That's what makes it the bargain of the century imo.

[HobbyDigger2]

yes abt all these matters , but I doubt that the SP  will rise with such a big step. RE  FTE  announcment update delay to  19th. ASX Voluntary Suspension Forte Energy NL ("Forte Energy" or "The Company") (ASX/AIM: FTE) The Company advises that trading in the shares of the Company were voluntarily suspended on the ASX on 15 January 2015. The voluntary

[Itsagusher]

To me the delay means that it has one more day to stay off the radar. The opportunity to buy at these levels will be gone after that. Not saying it's going to ten bag overnight but you'd have to be blind not to see the opportunity here, given the huge disparity in valuations between two companies sharing the same resource.

[HobbyDigger2]

on the long term you should be right ,  but at the moment who is buying this stock ? https://web.tmxmoney.com/quote.php?qm_symbol=EUU only small numbers and no insiders for  long time https://canadianinsider.com/node/7?ticker=EUU do you really expect a huge upgrade of resources ?  to  double ? IMO  till today I didnt see any signs for a substantial upgrade anywhere. as

[Itsagusher]

It shouldn't really need a big resource upgrade to get this stock moving as there is a clear valuation anomaly between the two companies and sooner of later Mr Market will make the necessary adjustments. It's just off his radar at the moment, but the next news release will put it back in the frame and adjustment will then begin. The smart money will get in before that starts happening, as