GREY:SXRZF - Post by User
Comment by
factoryon Sep 02, 2009 9:50am
431 Views
Post# 16270307
RE: RE: RE: uranium sucks bigtime
RE: RE: RE: uranium sucks bigtimeHmmm. Despite the fact that this company is a POS with crooked idiot management, at some point the stock price starts to look good again because:
A. unless they back out, the Japanese consortium is paying $2.30/sh on or before 15-Dec-2009;
B. their hedges (fixed contracts), which limit their upside, also protect their downside. Selling 16Mlbs @ $46/lb and 0.91Mlbs @ $79/lb. With the remaining 8Mlb to float at spot prices (subject to their discretion to sell or stock as inventory for future sale). ie. U3O8 could go to $0.00/lb, they will still have a cash flow;
C. Approval for mine deal from RazamaKaz is expected by year end (which will happen but at what bribery costs, only they know).
Not sure it will go that low, but looking to get in somewhere below $1.50/sh. At that point the Japanese will back out. No way will they pay $2.30 per share if the stock is trading below $2.00/sh. They will re-neg or pull out. In which case, it could fall further.
With the last RazAMaKaz scare it went to $1.66/sh