Lifted this from Far East Capital's research....For me, I have met Warwick Grigor in person. I know he does not like WHE
Hhhmmm, market caps of all these uranium plays are getting out of hand IMO. Even PDN is off the scale.Halba said:mkt cap now $160million for what exactly?
Many will agree here reece, but it's hard to ignore the potential to make money out of these in the short term. It's been an opportunity to make some easy money if you lock in profits. Someone will not have a chair when the music stops though....reece55 said:Kennas
I have been saying this for quite a while, but the last time I posted any sensible sort of analysis on the Uranium thread, I was shot down.
The reality is, and WHE included, the vast majority of these booming Uranium explorer stocks are going to be sold down when investors who don't know the first thing about sensible mathematical valuation techniques get nervous. It will happen, it is inevitable. Some of the U explorer charts have very similar traits to that of the internet stocks in 99 - 00. For those who have short memories, these stocks came down just as fast as they went up. For better or worse, I have deliberately avoided the U sector since about Dec 06 - it's just too hot!
But don't listen to me, it's different this time, the price of U will keep going up and China, man China!!!!!!!........ I mean, once a company finds a resource, clearly it should trade at it's resource x spot price less transactions costs of extraction. Don't worry about any of the risks!!!
Cheers
Yep, good luck to those playing with this one.reece55 said:Kennas
Agreed - many ppl have made money on WHE and good luck to them. I don't want ppl to think I have sour grapes here, I am merely saying that on a risk/reward analysis here (and taht takes technical and fundamental analysis into account) says this one just doesn't stack up. With MBL and Packer backing however , I suppose it was inevitable that in such a hot sector this stock would do extremely well.....
Technically, this thing couldn't look any better - large break on Friday to new highs on relatively high volume. Ordinarily, using a breakout entry method, this would be a spot to actually buy some WHE here!
What concerns me is the type of trades going through the system - all less than about $20 K in each parcel acquired. Now, granted this could be an insto acquiring under the radar, but IMO it is being fueled by retail investors. + total traded for the day was less than $1 Mil - low liquidity to me is always a no go. Anything less than an average of $1 Mil consideration per day. So all in all, I wouldn't be touching at the moment. But I do wish all holders the best of lcuk here!
Cheers
kennas said:Yep, good luck to those playing with this one.
I think what we've put out there reece is that people need to be careful playing with these types of stocks. Sure you can make some money if you play it right, but you can also get burnt. No one should think these things are going to keep going verticle..
panem said:"Playing with these types of stock", eh?
These words from a neutral moderator?
Apologies if that was not being neutral, but my job perhaps is not to be neutral, but objective, as I have been here.panem said:So?
"Playing with these types of stock", eh?
These words from a neutral moderator?
Mhmm?
I am remaining fair and just telling, that I probably know where you are doing those big mistakes in evaluating those shares:
You simply don't know how to read the (hungarian) numbers.
Wildhorse set to produce uranium by 2010
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