RE:Thought on the latest deal.I agree with all of that Solver. Good post.
Solver wrote: How did they come to the value of $0.85….for a $3 stock? (Three dollar Dev.?)
Perhaps US dollars would have been somewhat fairer? Remember we are not dealing with a so-so ultra-pumped, unproven NXE deposit, but with the best in over 4 decades….world class, proven PLS gem.
CGN deal is a letter of intent, with potential for a deal. The 82 M is locked in for now. There are both pros and cons as has any deal. Remember too that the Chinese are famous for showing the money, but, are cautious about really spending it. No tap in to the 82 M on the basis of the deal! No borrowing, spending, or, giving any bonuses….period.
Until that occurs FCU is still on a 12 million dollar budget and must be run as such.
We still have the same management situation +1, so shareholders must absolutely keep a close eye on FCU’s business.
I am of the same mind as many others, my friends as well…a fan of the deposit but not of management…….they have eroded my trust, and after their self-serving merger attempt, I am still leery.
Also there is the appearance of questionable insider trading. This deal did not come into existence two weeks before it was announced.
FCU management should consider themselves on probation for the coming year, in view of so many screw ups. We can’t get side tracked with the CGN deal in that regard. Although there have been a herd of FCU management’s buttt lickers and back slappers making their appearance, showing their glass bauble award, this does not minimize the fact that management have hurt the SP…..horribly and unnecessarily. As I stated before ACCOUNTIBILITY is an absolute must for management starting immediately!
Dev and co. will no doubt find themselves monkeys to the big CGN organ grinder. Could be a good thing in the near future. At least with CGN’s directors, we get a dilution to FCU mgt.. Yah, yah the majority voted to keep them in…..tell that to my stock value! Same leopard, same spots….bigger game!
In the meantime: Be prudent and consult, before spending. Bring management compensation/benefits in line with other juniors. Take out the clause that you get 3X compensation for failing, if fired or dismissed!
Why should FCU shareholders have to pay exorbitant amounts for failure? Show your bread and butter shareholders that “you have really listened”. FCU management now has the opportunity to restore some trust and confidence if they really take shareholders concerns seriously. Just saying “we are building shareholders value” is meaningless hot air pumping politics…..show us, by honest and trustworthy deeds! CGN is a start.
What will be the temptation to move funds over to FUU? CGNs directors may be a buffer!? CGN could offer a similar deal to FUU on its own merit if they think there is any value there….not FCU stockholders!
With FUU picking up a lot of acres of unproven moose pasture, the temptation could be there!
It will be in CGN’s interest to grow the PLS deposit as large as possible. The more lbs. U found the greater the 25% share becomes, so their directors will, no doubt, be pushing for expansion of drilling. That is a definite positive. My personal opinion is that the PLS discovery to date is only a small fraction of what is yet to be discovered, and I believe CGN is of the same mind. If this deal progresses to producing fruitage, it certainly has the potential to be worth $3+…right Dev?
There should have been (or yet to be) a ratio clause in the deal. The more lbs. discovered the higher the price per share CGN should pays (obvious and logical). With this present deal, (?) the more lbs. discovered the more free value CGN probably gets (simple give away…..again?). Not the brightest deal if that is how it turns out.
With a discovery ratio, the shareholder and both companies have a win, win package. This could have forced the SP up with every million or so lbs. added. Perhaps it’s too simplistic. However not needing FCU dilutions is a plus if the deal is sealed.
We can be sure that this deal has poured vinegar on Cameco’s teeth. Can’t imagine them ignoring and taking this in stride, because it has the potential for being the toe-hold that de-thrones Cameco as the Athabasca Uranium Giant, in the future, especially when other discoveries are made nearby our PLS. If CCO Timmy is a future player, with the future of CCO in mind, he won’t ignore the goings on….or does so at his company’s peril. Wouldn’t be surprised to see some CCO shareholders, sell and pick up FCU shares….at least a few as a reserve for the long haul.
But, too, CCO and CGN haven’t exactly been enemies so this makes for interesting times. These things usually take place in secret for obvious reasons so we likely do not see the entire picture. Very quiet out there in the rumor mill.
Cigar Lake reminds me of the story of Damocles Sword, production always hanging on by a frozen hair. One wrong move and ……….
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As for the NXE cheerleaders, here is what I do to make some coin: Since most have some sort of insider info, and they know their SP is going to tank or implode, they make herd appearances on the FCU board with negative unbelievable information/accusations/analysis hoping to get FCU shareholders to sell, and buy NXE. They go far beyond what is posted and implied on NXE’s company web page. This, for me, is a sell NXE sign and wait to buy in after the downer. They then pump up the NXE and FCU boards with ridiculous estimates of 200+ million lbs. (some as high as 600 million+) LOL10x10 . And the cycle repeats itself. It’s one way to beat the day trader….at least it’s worked for me up to this time. I would be negligent not to say: thanks for the green NXE pumpers!!!! Not a long term holder until the Ni 43-101…..if then. Feel that it will be a disappointment, so at this point…….obeying the many keep out signs.
Think that the CGN deal has more positives then negatives, but also feel we have to keep tight reigns on FCU management; let them know that this deal doesn’t give them free rein to “help yourself to the goodies”.
With great fortune and power comes also great responsibility (and danger). { story of Damocles}
All in all nice to see a small positive share price increase, but too early to see the light at the end of the tunnel. Feel that shares will continue to edge up in anticipation of the U market improving. I like to see the spot price bouncing either up or even a little down because that is an indication of activity in the markets. Sooner that later it has to go up!
Handled properly, FCU will go “NOVA” in a recovering Uranium market!! 2016/17 just might be the biggie, and the culmination, for the longs!
Musings