Three Reasons Why I Sold My Uranium Energy Position

This morning I decided to take profits and close my trade in Uranium Energy Corp. (URME.OB) at 7.14. I opened the trade on April 2nd at $5.90, so I managed to book a 21 percent gain in just 7 days. I will take that anytime.

I decided to close the trade for three reasons:

1) The stock was up 21 percent in a week.
2) The market has been up 6 days in a row, despite what appear to me to be some discouraging fundamental developments.
3) With two weeks to go in my masters thesis, I do not have the time to dig into the matter regarding the article that appeared on Seeking Alpha last week. If true, the article raises some very serious doubts about the history of some members of management. I have no idea whether it is true or a bunch of garbage, but with a nice gain on the table and lacking the time to find out, I decided that booking the gains and cutting my risk would be appropriate.

There are still some definite positive catalysts out there for URME, especially if they can provide a resource estimate in the near future. It appears fairly clear that they will find some uranium on their properties, but the question is will they find enough to make the company worthwhile, and second, how much will it cost them to get it out of the ground?

If those questions are answered, URME has the potential to move higher. However, without this knowledge, risks remain elevated in this stock.