RE: RE: RE: RE: RE: VALUE POUNDS IN THE GROUND??? The only offer we would get at $1.25 would be very hostile. No way Mgmt is letting this go that cheap, they are heavily invested and their compensation will come from selling at a decent premium not to the Stock price but to the value of the assets. Not going to see them even consider a price at that level. TIming is not right for UEX to try and seek a sale. To much upside in the next few months with Japan restarting its reactors, and the new builds. Not to mention the wet blanket known as Megatons to Megawatts expiring. The supply demand imbalance will get extremely nasty. My understanding is most Nukes have less than a 45 day inventory of U.
"Megatons to Megawatts has proved lucrative for US utilities, while at the same time dispensing of surplus Russian weapons grade uranium. Under the deal, some 45 percent of reactor fuel used in America is supplied by down-blending part of Russia’s excess weapons uranium, with 10 percent of that HEU coming from warheads in missiles that had been pointed at the United States.
Another 5 percent comes from dismantled American missiles, according to the Nuclear Energy Institute, a Washington-based lobby for the nuclear industry."
So half of the nuke generated electricity in the U.S. is coming from the Ruskies or our own warhead processing. That is U that is highly concentrated weapons grade,
The risk I see is the head snake at Cameco cooking up a desperate deal with a cash strapped Areva (owned by the French Gubmint) that circumvents the proper price discovery. I am not aware of any convenants that would allow UEX a chance to buy out Areva in such a circumstance. Anyway I can't see any interest my Mgmt. or other significant shareholders below. $2.25. True value is well in excess of $5. Hard to see that right now because the sector is so oversold.