GREY:BHNGF - Post by User
Comment by
GK52N106Won Oct 02, 2009 11:13pm
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Post# 16359194
RE: GEM value
RE: GEM valuei have heard a few people including good old Al himself say that gem is undervalued - can someone define for me what undervalued is - not being rude but i honestly don't know how this is defined or calculated.
i have also held this stock and accumulated (averaged down) for quite sometime because as a no nothing investor i listened to a BNN segment and i knew something about the Elliot Lake area from years ago.
so lets get the discussion going.
I say that today's reality is:
- gem has no revenue.
- gem can't make up their mind which commodity they are bringing to market.
- there is no short term demand for uranium - we can debate this all you want but if there was the price wouldn't be on life support. every commodity has rebounded but uranium. when every one was dumping it others bought it and already stockpiled. no one is buying it now - look at the transacations and no one is buying it because you can't just store it in your backyard. so until all those reactors come on board theres no need for it - although an article on uraniumseek.com suggest that all uranium mined in the future will be at a cost of $60 per lb.
- gem hasn't made any progress with their feasability study and the licensing and permitting takes around 2 years and it's only been 1 so far.
- not a big enough partner in any of their ventures.
theres still a long way to go, such a long way that some have suggested that gem will miss the boat altogether.