RE:RE:From across the pond..AimHigh8 wrote:
Touareg,
Good to see you posting again, and also good to see you found something to get excited about. I too am hoping this is the beginning of the long-awaited U bull. Hard to fathom this stock was over $200 in 2007 and $73 in 2011....with less fuel in the tank than today.
I've started picking away at this with the hopes that the U price accelerates upward before EFR needs to do another dilutive financing. Fingers crossed on that one, but as Rick Rule stated, either the price goes up or the lights go out. Not a matter of if, but when...
If the U price starts to accelerate as we've seen in the past, EFR will accelerate even quicker due to the leverage this company provides - would be a sight to behold.
Looking forward to more of your posts Touareg
Back then, $73 meant $100-$200 something million market cap before rollbacks and series of dilutions. However, the company was much smaller and did not have URZ, White Mesa mill, and other acquisitions they made in years since. In a market with uranium spot at $50+, we can expect UUUU market cap to reach $1-2 billion, which translates anywhere between $10 and $30 dollars a share depending on further dilutions. However, in an insane bull market like we've seen in 2007, all bets are off.
What I really like about this company is that they were the only ones aggressively growing the asset base in the buyers market when others were dumping those assets for cheap. What I hate about this company is how they financed those acquisitions. Its a double-edged sword, I guess.
Their growth strategy means that their performance is exponentially correlated to Uranium price and the willingness of utilities to sign long-term contracts in US. Its not a stretch to think of this company as basically a 3x ETF on Uranium spot. In the bear market like today, they underperform massively; in the bull market, they will be the top performer at the end of the day.