RE: RE: This stock is dead meat !Uranium as a whole has been ice cold, and the recent dip in the TSX over the past week or 2 has taken the wind out of MGA's mini rally to the 80's.
But that also creates a good buying opportunity considering that Obama seems to be pumping uranium a bit, and the TSX itself has already pulled back a fair chunk from the recent 'highs.' Still plenty of room for the TSX to climb as it will inevitably reach 2008 highs once again - its just a matter of time.
I'd say that MGA is one of the 'best of breed' compared to other similar uranium stocks. It's floundered a bit just because uranium as a whole has done poorly. There's been dilution in the past, but that is what gives it the balance sheet strength that it enjoys today. MGA probably has about 50 million cash or equiv, or something like that? When it comes to these sort of stocks, balance sheet strength is important because it gives you short-term safety. Nothing horribly bad is going to happen to MGA as long as it has some good cash and assets on the balance sheet.
In the medium/long term MGA has some great assets that are easily some of the best around compared to other similar sorts of exploration companies. MGA is relatively close to production compared to others. URE is the only other of similar quality that is close to production. URE also has a very strong balance sheet and I consider it to also be one of the best of breed as well.
The quality of the assets and prospects for production give you the medium/long term growth potential.
So here we have something that's safe in the short term due to balance sheet strength, and has great future potential due to the quality of assets and the timeline for production.
Looks good to me.
That's why I'm starting to build a position here. Adding it to my position in URE to cover off my 'uranium exposure.' They're the 2 best as far as I'm concerned.
Hitting lows right now by no fault of the company itself, just a victom of the current times. As Obama continues to pump uranium energy as clean power, etc. and as the market continues to trend back towards 15,000 (inevitably, it will) we'll be looking back and saying "should'a, would'a, could'a" regarding the best of breed uranium explorers such as MGA and URE.