Mega is expensivesmall piece from stockinterview.com:
We looked through our copy of the Hargreave Hale Report, entitled, “Too Hot to Handle or Just Warming up?” This is a leading British financial institution, based in London. They are a major shareholder in STM, and they have been recommending STM shares. On page 32 of their document, we reviewed a great financial analysis of 33 Canadian and Australian uranium producers and development companies. The bar chart depicted the Uranium Enterprise Value (UREV) per Risk Adjusted pound of U3O8 Reserves and Resources of those thirty-three companies. A horizontal line crossed the chart, showing “fair value” of about US$4 million for each company’s UREV per pound adjusted.
It was interesting to study how STM stacked up against many of the most popular uranium companies. Companies, such as Mega Uranium (TSX: MGA) rated at about US$28 million – about 700 percent ABOVE the Hargreave Hale “fair value” analysis. Crosshair Exploration and Mining traded about 500 percent of its fair value. UEX scored about twice above its fair value. Companies such as Uranium Resources, Western Prospector, Paladin Resources and UrAsia Energy scored at or very near their fair value. Strathmore Minerals had the lowest fair value rating – an absolute steal at about 30 percent of its fair value. About 16 companies traded above their fair value, some very much above the Hargreave Hale fair value analysis. It was enlightening to find Strathmore was in the company of producers such as ERA of Australia, IUC, Uranium One and Denison as an undervalued uranium company. In this case, it was the most undervalued of all 33 companies analyzed by the City of London financial institution.