Investment thesis
I want to start off by saying that I’m bullish on uranium prices. Back in November, I took a detailed look at the uranium market in my article on Uranium Participation Corp. (
Uranium Royalty Looks Overvalued Based On Fundamentals
Summary
- The company has royalty interests on several uranium mining projects across the world, including Cameco's McArthur River, and Cigar Lake mines in Canada’s Athabasca Basin.
- It also has $58 million in cash, equity, and inventory holdings.
- I think this one looks significantly overvalued at a market capitalization of over $240 million and that it’s a sell.
- However, the short borrow fee rate stands at over 25% as of the time of writing.
- Unless you have a very high-risk tolerance, it may be best to avoid Uranium Royalty for now.
Gold Panda has been working as an M&A analyst for over a decade. He's been investing since 2007. Preferring value to growth, he tends to take a relatively conservative approach in his investing. His focus is on small and micro-cap stocks, which he believes is the area that offers the greatest opportunity to exploit market mispricings.
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