State of the companyLike most of you, I am dissapointed with the current share price. IMO, here are a 11 reasons why we are trading at these levels.
1) Although Drilling at the Sibley Basin has found sniffs of high grade uranium, they have been unsuccessful in finding an economic deposit. The latest round of drilling was discouraging.
2) Exploration at Miller Creek is in it's infancy and no significant data has been revealed that would interest the common investor.
3) Drilling at Richards Lake is occuring (not sure if they have resumed after the Christmas break). Preliminary information from sampling and airborne surveys has shown promise. Drill results will eventually come and follow-up drilling will be required. Lack of results and news generates little interest.
4) Although they have a pile of money in the treasury, they have been unsuccessful in acquiring new properties or projects.
5) The spot price for uranium went from a high of $140/lb down to $86. Many investors pulled their money out when the price started to go down.
6) There are lots uranium exploration companies for Joe Investor to choose from and only so much investment capital available.
7) Geographically, there are hot play areas for uranium exploration such as the Athabasca and Otish Basins. Until the Sibley proves out, it ain't sexy.
8) Many investors have pulled their money from other commodities and are investing in gold bullion, gold companies, or gold exploration companies. As above, there is only so much money available to invest.
9) As with other companies, the recent financial meltdown resulted in the company's share price getting hit.
10) Tax loss selling: in order to raise money, the company sold about 40 million shares last spring at 40-cents. Do doubt many people cut their losses when results were not up to expectations.
11) Investor awareness: the company is not in the limelight and is not getting enough exposure.
Things that would help the share price:
1) Favourable results or speculation thereof (nothing drives the price of a stock better than a good rumour e.g. GRW).
2) Acquiring a proven project or property.
3) Increase in the uranium spot price.
4) Increased investor awareness: IR needs a fire under their behinds to shake things up. The company should provide more news updates, an updated website with up to date information and a new presentation. They should also attending more resource shows; although R.R. was in Vancouver last week, RPT did not have a booth.
BTW, there are 40 million 60-cent warrants due by June 12/08. That's a lot of paper to hit the market all at once. Probably a good thing that they won't be excersised.
All this is IMO. Do your own DD.
Sam