RE:From Peter Epstein.sailor1986 wrote: Click on OPINION tab .
I don't understand why NXE remains so undervalued. From the opinion article:
The implications of an ongoing skew in the conventional wisdom is that factors upon which the valuation hinges are unwittingly, and wittingly, too conservative. Looking at the widely cited, Enterprise Value (“EV”)/lb. ratio, NexGen is trading at US$1.45/lb. (on a pro forma 225 million lb. resource & 335 fully-diluted (“fd”) shares). I strongly believe that the Company’s true value is substantially higher. In many important ways, the Arrow deposit is already world-class. What EV/lb. takeout valuation is appropriate? M&A metrics change significantly over time and jurisdiction. If one agrees that (eventually) a takeout is likely, isn’t it fair to surmise that the EV/lb. ratio would be a strong one? I asked Cantor Fitzgerald’s Robert Chang that question, his response, “I think in the current environment, a premier uranium deposit like Arrow should command an EV/lb. ratio of US$5 -US 7/lb.” image: https://www.stockhouse.com/getattachment/2f6c6500-c64a-4994-ba5b-f19913ab4ed7/peter_324_1.png
