Uranium Resources Moving To Nasdaq, But Concerns Remain

| About: Uranium Resources, (URRE)

Uranium Resources (NASDAQ:URRE) announced today that it had received approval for a Nasdaq listing and that its shares would begin trading on the Nasdaq on Thursday.

This has the potential to increase the number of investors who would take a look at the company, but it is worth noting that this is also an event that many insiders and large holders will use to exercise options and cash out positions.

Having followed URRE for several months now, I remain worried about their failure to cut production costs (which remain above $40/lb), as well as their inability to deliver the production volumes that they had prospected. Given that the company has a market cap of $500 million, it is already quite richly valued in comparison to most other junior explorers, and their selling price for uranium will continue to be hampered by long term contracts out through 2008 (and possibly further given the joint development of URRE’s New Mexico properties with one of their customers).

I certainly don’t see this piece of news being an entry point, but the story continues to be worth following.