RE: Should I stay or go? (snafur)snafur, Very good post.
Exactly, their cash positions were $30.25 million after IPO, which could be calculated at $1.3 per share (the company might have spent some small money for their drilling work). This is exactly the current stock prices being traded.
With UWE's drilling expense plan and $30 million cash in hand, UWE is well funding for its drilling work for the next 5-7 years.
But, of course, I don't think that it'll take that long for UWE to find the uranium there.
Actually, it's hard to find a stock like UWE which is being traded in cash position. Don't forget UWE has a large Uranium land position on the other hand, which means you get part of those land for free if you 're a shareholder of the company.
I remember that I've once read an article in a uranium site which said China is planning to build 40 nuclear power plants in the next 20 years and India is planning to build 30 nuclear power plants in order to meet their power consumptions. They all need uranium for these nuclear power plants. You know China and India have 1/3 of world populations. They're huge markets. Once the nuclear power plants are built, they'll continously need uranium to keep them working.
UWE's uranium properties in Guyana have been proved uranium-riched by some other companies before. The reason that they gave them up was because uranium prices were too low at that time.
The main reason for uranium to pull back is that US government says they'll release some uranium deposits to the markets. But, I doubt it that they'll release large amounts. You know, uranium is somewhat a dangerous material if not properly controled and used. I think uranium market will be still tight.
Today, I bought 5k shares of UWE and some other uranium stocks. UWE has huge potentials. We might have seen some hints from their phase I drilling. If the markets are calming down and UWE starts moving uptrend, I'll add more.
snafur, could you tell from where you got "Canaccord has a target of $7.40 ", please? Thanks in advance.
From Canaccord's UWE positions, we can see Canaccord is holding 1.3 million shares at average price of $2.91.
TD is holding 885,000 shares at average price of $3.66.
IPO at $2.5 and high as $5.85, $1.3 is dirt cheap.
Good weekend and
Good luck to all.