Some thoughts on what Tim said during CCO conference callWhen I listened in on the CCO conference call this morning, Tim said that :" We are many many years away from aquiring green field uranium assets". Realizing the things that could happen between now and many many years away, I took some profit in FCU today and it is only trading at 1.2X book. For something that trades more than 10x book as of closing today, I sure hope someone else will buy the NXE shares at more than 10x book in the future as the correction starts to set in.
The lack of options for the stock might have detered shorts (no puts and no calls to cover shorts), a key regulatory element of the market (for the most part) that prevents a bubble from forming. If the bubble were to burst, I hope it does not affect the sentiment in the uranium space.
Just some simple numbers to put everything in perspective:
CCO.TO 5.72B market cap, produces 17% worlds uranium
NXE.TO 1.24B market cap, exploring for uranium and hoping to either get bought out or develop when price strengthens.
The valuations does not seem to matter for a stock like this just like the mad weed stocks,
JMHO. Have a great weekend.
Disclaimer: I am a uranium bull but I have no position in NXE