It looks like the pain continues for Energy Fuels (UUUU), which is down another 5% this morning, currently trading at $1.90/share.
Most recently, I purchased another batch of 1,500 shares at $2.05/share. How much more downside remains?
But I did hear back from management this morning and they had this to say regarding the selloff:
- There is no discernible reason for the large decline in share price.
- The company issued a press release to confirm no material change.
- No large institutions are selling at this time.
- Large retail investors from NY are liquidating substantial positions.
- The Uranium Global X Funds ETF (URA) has been getting some redemptions and might possibly still be overweight in their UUUU allocation.
- Tax-loss selling has commenced and this is a likely contributing factor driving prices lower.
- The ENTIRE uranium sector is experiencing a decline to some degree at this time.
Lastly, the company re-affirmed their belief that results from their Q3 earnings report were positive. As far as Energy Fuels is concerned, they are executing their plan accordingly and it’s business as usual, in spite of the massive share price decline.
So, please take this news for what it’s worth… Investing is tricky (and risky) business, so please do your own due diligence before forming any definite conclusions!
There are no guarantees!
As I mentioned in the last post, I feel like I’m sufficiently allocated in my uranium holdings at this time, so I am not planning on making any additional moves. However, if the selloff in UUUU continues, I will have to periodically re-assess the situation and consider adding more shares.
I am using UUUU as my “non-expiring call option” on the future rebound in uranium prices… And in my humble opinion, the shares are immensely attractive at these low prices!