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Time To Consider Trimming Uranium Participation Corp. Due To Material NAV Premium

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Rational Expectations


  • Uranium Participation Corp. has seen recent strength after the agreement with Sprott to achieve a liquid U.S. listing.
  • The company now trades materially above NAV (on my estimates by about 20%), compared to a discount for much of 2020.
  • Though there are reasons to be constructive on uranium pricing going forward now may be a prudent time to trim exposure or explore substitute vehicles.
  • Ironically, a Sprott fund may not be a way for the premium to NAV to persist, some Sprott funds trade at a discount to NAV as has Uranium Participation Corp. for much of its history.
uranium ore, on electronic scale. Metal used in industry. Mineral extraction concept.
Photo by RHJ/iStock via Getty Images

Last summer, I wrote some bullish pieces on Uranium Participation Corp. (OTCPK:URPTF) due to a material NAV discount. Now, by way of an update, Uranium Participation Corp's meaningful premium to net asset value may present an opportunity to trim exposure at

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Rational Expectations profile picture
Value-oriented ideas and special situations, generally mid/small cap. Also, orphaned and unfashionable investment ideas, ideally with a catalyst and the prospect of asymmetric upside/downside payoffs. Contrarian tendencies. To some extent I'll go anywhere if it's cheap and I'm more influenced by momentum and quality than I used to be.

Analyst’s Disclosure: I am/we are long URPTF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Note - my long position is increasingly more of a tracking position, which I may sell down further. Not intended as investment advice. Author's stock positions may be updated without notice. No warranty is given on the accuracy of the information in this write-up and any accompanying comments or that it will be updated. Investing involves risk of permanent capital loss.

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