September 30, 2008–The uranium spot market experienced a series of shocks over the course of September. The first tremor came when the credit crisis spilled over into the uranium market at mid-month when Lehman Brothers, which had been involved as a uranium market participant over the past two years, was forced into bankruptcy. Then as the credit crisis grew so too did supply, as both traditional and non-traditional sellers came to the market in an effort to raise cash. As a result of this increase in supply, TradeTech’s Exchange Value dropped by nearly 20 percent or $12.50, to $52.00 per pound U3O8.
In times of falling prices and uncertainty in the marketplace, many sellers prefer to sell material through off-market transactions, and the current environment is no exception. Sellers are hoping that a less noticeable entry into the market will allow them to place their material before the marketplace has an opportunity to react to this new supply with lower prices. Buyers, anticipating further price declines, are increasingly hesitant to commit to purchases and are backing away from the market. As a result, have-to sellers become more aggressive, essentially “leap-frogging” over one another in an effort to conclude transactions. This behavior will continue until suppliers have satisfied their need for cash and/or demand increases to absorb the excess supply.
Wrong, again, oh wise one. I own 5000 shares (so far). I expect to buy more when it bottoms. I never said that URRE wouldn't turn a profit for investors IF they hold on long enough (which could be many months or years) --- read my previous posts here. Don't think they will go bankrupt but do expect they will have a very difficult time through 2009 as a minimum.
I don't mind the .10, I've been accumulating this since it dipped below two, and I will continue to do so. I could never ask the hedge funds for a better gift than this.
So, just for the record, you are short here?
You can't tell me anything that makes sense, you mean to say.
If we go to .10, then management can buy back 100% of the shares, and still have roughly 10 million in the bank and operate into the summer of 09 without bringing in a single penny.
There you go, again, believing management and what they tell you. That makes you an expert in ... stupidity, not facts (which you like to ignore when it suits your purpose --- you STILL have answered the "mail" about their interest charge). Due diligence is about checking multiple sources and not relying on just one (management, which is biased anyway).
Maybe we'll both have the opportunity to buy more URRE when it reaches $0.10 Elevator going down (bargain basement).