RE: RE: RE: This stock is dead meat !Smart investors look at things in terms of downside risk vs. upside potential.
Considering that MGA is hitting these lows for no real reason other than poor market mood and the coldness of the uranium sector (ie. nothing specific wrong with MGA, just general bad mood towards uranium and the TSX in general) I'd think that the downside risk is low. Why would MGA go lower? Just due to bad market mood.
They have a strong balance sheet, they're not going to zero. Uranium is in the ground, this isn't completely a speculative company. We know we have some good assets that are worth more than what the stock is currently at. Etc.
Because we're hitting some new 52 week lows, it's hard to say what the downside risk is exactly, my guess is that downside risk from here is pretty low.
But I'd say that the upside potential is at least a double or triple from here if uranium gets hot and the TSX goes to 15k.
So lets say 5-10 cents short-term downside risk, maybe $1 upside potential (meaning, I could see it going into the $1.60 range under the right circumstances)
Not a bad to have some MGA. Would be silly to be a seller IMO.