GREY:URPTF - Post by User
Comment by
Art365on Mar 18, 2011 4:34am
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Post# 18303444
RE: Trading above NAV?
RE: Trading above NAV?It is surprising, but this calculation makes sense.
On January 31, T.U net asset value was 9.40$ per share, with U trading at 73$.
To evaluate (roughly) the actual NAV, you could take the formula:
T.U NAV = (uranium price / 73) x 9.40
But this formula is equivalent to:
T.U NAV = uranium price / 7.77
Of course, it's more complicated than that. On January 31, Uranium Participation held roughly 52% U3O8 and 48% UF6. The info we can get is about U3O8. From what I can understand, the theoretical value of UF6 is 2.61285 x the value of U3O8. But on January 31, for example, the value of UF6 was 2.78 x the value of U3O8.
The other problem is to find a value for U3O8. The most useful info I found is on this site:
https://www.cmegroup.com/trading/metals/other/uranium.html
At the moment I write this, the "spot price" (delivery March 2011) is 49.75 (updated 7:29:04 PM CST 3/17/2011). It gives a value of 53.00 for delivery June 2012. But 9 seconds later (7:29:13 PM CST
3/17/2011) we get a value of 54.50 for delivery July 2012. So the spot price isn't necessarily the most recent information.