general comment
Back aways when EFR was in the 17.5 range the company raised money with a share float. Those advancing that money got their shares for .14, - well under the prevailing price. Well today, even those investors are underwater, (if in fact they haven’t sold out already.) For me, that event was the single biggest let down of holding this stock.
Yeah, if you’ve held it since the spin out, it has been a big disappointment but so has the whole sector. During these last few years there has simply been no good news to support EFR or any of the uranium stocks. But if people are selling EFR, (the likes of which went on yesterday) because the company is mothballing operations well I think it’s absolutely ludicrous. Why would anyone produce a product at a loss? Besides, how could a company even secure access to lines of credit with such a proposal? This is a play about an entity with legally permitted mines and mills in a country that is not producing much uranium. When the spot turns, and rises from these currently abysmal levels, no doubt, savvy investors will perceive it as an investable opportunity or possibly even sooner. But I hardly think management at EFR or any uranium company are “wining and dining” and smoking big fat cigars. There is no money and no current access to capital to do so and no one with the money would be insane enough to advance any to a company to do so. The fires are cold in the boardrooms like the ones we investors huddle around.
So where the hell does that leave us? I suppose we can bitterly think of the ‘morrow but we can also reflect on the potential of the EFR entity. There is value in those mothballed assets and Anthony and company have successfully led their little caravan across the Sahara, against considerable odds and yes, with a substantial depreciation in the share price. But I think yesterday was way overdone. Let’s not think mothballing but even if we do, let’s think about the merits of mothballing in this very tenuous market. There are positives here so let’s not throw out the baby with the bathwater.