Energy Fuels Update: Recent Share Price Drop (November 23, 2015)

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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?

Who knows…

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.
  • 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!

 

Happy Hunting!

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Tax NewsFI FighterSeanBeSmartRichNo Nonsense Landlord Recent comment authors
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No Nonsense Landlord
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As long as oil and NAT gas is cheap, there is no reason to use nuclear power. You will need some uranium to power existing reactors, but not as much new demand.

Iran is creating new reactors, but that is an entirely new debate…

Once the economy starts to get powered up, more fuel will be needed.

BeSmartRich
Guest

I have been researching this company and outlook of Uranium in general and I am getting very interested and put it in my watch list. Will give a read on their financial statements now. Thanks for sharing! We may be a fellow shareholder on this one. 🙂

Cheers!

BSR

Sean
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Sean

I was wondering if you have any thoughts on what will happen to mining shares if gold does drop to 850. There has been nice support of hui at 100 level.
I have been looking at ngd, 1 of Pierre lassondes companies, any interest?
I have also been adding in to mux, aem, and ag. If silver drops below 10 I would consider call option on silver Wheaton.
Your blog has sparked by interest in first finance.
Re uranium companies I like the idea. I would think that these junior companies will explode at some point. Probably uranium prices will move in similar fashion at this point to the energy commodities and solar companies. I do think this is safer bet than coal companies. Have you ever investigated junior potash companies? That is a substance that can not be substituted for food production. I was looking at mosaic and potash and they are trading at historic lows.
Keep up the good work.

Tax News
Guest

At any rate, the business looks to be stable and growing,
and long-term investors could make out big if they’re patient,
and willing to ride out the ups and downs.

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