GREY:UEXCF - Post by User
Post by
KansasCrudeon Apr 23, 2009 10:08am
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Post# 15938792
10 for 1 to cheap, 5 for 1 more like it
10 for 1 to cheap, 5 for 1 more like it
A Cameco run on UEX at this time makes perfect sense to me. Due to their ownership position ( I think but don't know) they don't have to file any paperwork on acquiring more shares that any other company would do at around 7%. They have a war chest and stock prices are a pittance of what they were a year ago. Including Cameco, the upside of Cameco trading their shares for UEX is that they are approx 66% off their highs. The U market has probably bottomed and they need production to keep their customers happy. So if you believe the U story then you could hold your shares in one of the industry leaders and continue to play.
Even with the Cameco sell off 10 for 1 is way to cheap. At 5 to 1 or better with the Cameco price also discounted I might get interested in parting with my +200,000 shares. Assuming UEX and Cameco move in tandem then if Cameco or UEX gets back up to their old highs then a 5 for 1 deal would value UEX at around $12 a share. Thats above the old UEX high and I could live with that especially if I am holding some Cameco for the long term. Longer term the value of Cameco with UEX would be worth a lot more than todays Cameco. The market would probably assign more value to Cameco do to its size and visiblity. Just my 2 cents worth.