RE:RE:RE:RE:RE:IndifferentThanks for an impressive post quakes. I've been holding FCU for just over a year now. I bought in at .60, expecting the uranium price to be well up from where it currently sits. With the ever increasing resource that fission has, I'm planning on holding for as long as it takes. I believe that FCU has a lot more U to add to the totals. All the indicators point to continued growth in the nuclear space and I'm a believer that it's the timing that counts. Keep up with the informative posts. Staying long.
quakes99 wrote: Absolutely agree, Malcolm & Facts! No matter which Valuation methodology is applied, be it In-situ Lbs U3O8 or Discounted Cash Flow, the increase in "pounds in the ground" from last week's Resource Estimate update & today's new drill results from R1515W are adding future value in spades. Market isn't responding yet, but when they do all those extra pounds will greatly increase the project's Asset Value and set a higher ceiling for the share price.
Investors by and large aren't paying any attention to the news flow out of uranium stocks right now. Look at the tiny volume last week and today... only 4M shares traded over a 4 day period after the release of the new Resource Estimate increasing the average grade (better economics), Indicated resource (de-risking for PFS), and total Resource up by 35%. Target Price was raised by 10% to $2.10 and consensus target to $1.70 yet no more than the average number of shares traded on any given day.
Why? Because investors are no different than any other consumer when it comes to buying. Everyone wants the cheapest price for the goods they intend to buy. If they don't feel an urgency then they are happy to wait it out while keeping an eye on prices. If they see prices move lower then they bide their time... and when prices move higher they will move their Wish List into their Shopping Cart in case the price is the best discount they can get.
That's what Technical Analysis shows on charts, a statistical set of signals telling the chart reader when a share price is a buy at the bottom of a cycle, or a sell at the top. Not always effective, which is why so many technical indicators had to be developed. No one signal can be relied on.
As I've said before, and as we saw when the Spot price started to rocket higher back last November/December, when investors feel the urgency to move in to uranium stocks, they will. Right now they are like drivers sitting in their cars outside gas stations, watching for prices to change. As prices fall many will still wait to get cheaper gas... but if prices jump up then everyone piles in and grabs the nearest pump before prices go even higher. That's the way humans operate in a herd mentality.
Both nuclear utilities and the investment community operate under that same herd psychology. Utilities are biding their time until prices move a lot higher then they will pile in... as will investors. Chart readers call that a "breakout" as the herd starts to run in the same direction, rather than just milling about. ;-) That's exactly what they're doing right now... milling about.
When the herd does start to run then all those deep-pocketed investors will be firing up their Spreadsheets and loading in all the metrics used to decide how much they are willing to pay for the stock. Total pounds in the ground, average grade, initial CAPEX, Operating Costs, Risk, Off-Take deals, shares held by the CEO & management, NPV, IRR, Cost Recovery time, Life of Mine, and on and on... each will crunch the numbers looking for the best bang for their buck.
Fission is extremely well positioned for when that happens... an upwardly revised Resource Estimate, continuing expansion through more drill campaigns, plenty of cash in the bank to ward off further financings and dilution, an existing PEA that can be upgraded and groomed into a Pre-Feasibililty Study, very strong Insider holdings with minimum dilution, de-risking Off-Take in place with a guaranteed customer, strong Takeout potential and a rising Takeout premium... all the sorts of things that those deep-pocketed investors and fund managers will be screening for to build their own porfolio Wish LIst.
Thanks for your great contributions to the discussion.
As Cameco's CEO recently said to its shareholders... we believe that investor patience will be rewarded.
Cheers and good luck!