Uranium One Inc SXRZF

RE: RE: RE: RE: RE: 1.29 Should i sell

[coolbe]

sorry about my bad writing in the first post, i didnt realize my typo mistakes until after i hit submit lol anyways.  the following are comments made by paradigm.  

Paradigm Capital Inc, IIROC/TSX Member

David Davidson, Analyst 416.360.3462

Jacob Willoughby, Analyst 416.361.9557

Michael Bandrowski, Associate 416.360.1397

Maintain Buy, Lower Target

We are lowering our NAV from $3.66 to $3.18 to reflect the drastic impairment

charges and reduction in future guidance, See Figure 2. Our adjusted target price

is $2.50 based on approximately 0.75x our NAV. Due to the write downs during the

third quarter, we expect EPS and CFPS of ($4.37) and $0.12 in FY08 and $0.09

and $0.19 in FY09. We maintain our Buy recommendation for Uranium One.

Uranium One reported a third quarter net loss of $2.0b

($4.30) per fully diluted share. The loss included a $2.8b

write down on mineral properties and equipment, including

$1.8b for Dominion, which was recently put on care and

maintenance.

?? Third quarter production was down 8% to 704,600 pounds

compared to a record second quarter, which produced

767,100 pounds of U308. Guidance has been lowered to

2.8m from 3.1m pounds for 2008 and to 3.5m from 6.2m

pounds for 2009.

?? Our NAV and target price have been lowered to reflect

closure of Dominion, lower uranium prices and reduced

production. Our new target price is $2.50, based on

approximately 0.75x our revised NAV of $3.18. We maintain

our Buy recommendation.