GREY:UEXCF - Post by User
Post by
MiningMonsteron Mar 24, 2011 10:13am
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Post# 18333576
Uranium VS UEX
Uranium VS UEXU.to and UEX have historically had a very strong correlation.
From the recent lows, U.to has recovered 32%, UEX only 4.8%.
To me, this looks like a good mean reversion trade. Despite the accident, the price of U is what ultimately determines the value and viability of UEX's deposits. The recent accident has cast some doubt on the ability of the junior explorers to tap the market for financing. UEX is fully financed until 2H 2012- 2013 as they currently stand, by my calculations. Since it will not be derailed by financing troubles, the price of uranium will again determine the direction of UEX once the dust settles and it looks like there is quite a bit of upside to go.
GLTA