I still think it is because of results - reason DNN and CCJ seems to ignore the drop in U prices. ( DNN too should have dropped). Nothing new in results - it is just sentiment based. When you come out with results with a loss - no idea who but some do sell and the price drops.
Japan is the key - buying UEC is like betting that japan will restart their reactors - and I think they will in 2014.
Good Luck !!!
Yes it must be frustrating for sure. I have been tracking this stock every day since. It looks like $1.60's is a good buying point. I saw it drop to 1.62 and then buyers stepped in. Last 2 days it is selling off because of results. I will buy some if it dips to 1.60's......Liquidity wise they are doing ok. Spot price of U needs to pick up ...if it does this will spring back to $2.50+........just a matter of time.......patience is needed for sure
They diluted at $2.10 for one unit - which comprises of 1 share+ 0.55 warrant ( 1 warrant = 1 stock). The warrant has a strike of $2.60 which expires in 3 years. In other words they sold call options. If I am correct the call was worth about 0.10 cents ( you can argue it is higher or lower depending on the volatility you assume). They diluted at about $2. Market did not expect or like dilution and hence the stock is down under $1.90.
$1.60's this is a buy provided the market does not tank ( I think we are at a market top- I might be wrong here)
stock will drop to less than 16 as per your forecast...doubt it...if that is the case will load more call options ( Jan 2016 strike 20)
good question. Isnt that why the stock never really took off after the terrific results? Mr Market is also asking the exact same question you asked !
Nope - I dont have a position in UEC. I am long CCJ - better play with a divy but am keeping an eye on this one and will go long if it drops under $1.50........
yes nobody is here.
Stock tanked from 2.50 to about 1.70 ......all threw in the towel or are long term investors who dont watch this on a day to day basis.
I had intially planned to buy DNN/ UEC. but at the end decided to give uo on those. CCJ is big and strong - I will be able to sleep at night!
well said thornflesh. I too have been in the market for a while - 2 things are key here - Capital + Patience. Nuclear is here to stay. This is the time to buy and just relax. Collect the divy and forget about the stock. one to two years down the lane - you will do good.
I am planning to sell $18 June puts when the stock drops to about 18.25 ish...... should fetch me $1.50 - I will be happy if assigned( my cost basis will be $16.50 if I exclude commissions)
No rush here........
Commodity stocks are really hard to understand. I guess no buyers bceause:
1. Uncertain U environment
2. Street not convinced probably thinks next quarter they wont make it
3.This happens to low volume stocks ( most days the volume is under 1M)
4. Smart buyers are accumulating - only long term investors here.
Yes they do.........go to seeking alpha and read their CC transcript ...you can see many analysts asking questions..... You might be wondering why no upgrades? well they never thought CCJ can do this good in a bad environment. They will first buy the stock themselves and then the upgrades will start coming in......dont expect upgrades soon......they and their clients first need to buy.......
your fear came true. so on Nov 5th this is expected to trade at 6.50 to 7 bucks.....will be interesting to see. I bet they will start dilution...........6.50 to around 3 .........expect dilution.
I have decided to move on to CCJ - their results were superb and they are on track to ride the U upwave.........GLTA !!!