nuclear-news

Uranium stocks are a ‘house of cards’

Uranium stock price tanks http://www.mitchellrepublic.com/opinion/letters/3646366-letter-uranium-stock-price-tanks By Gena Parkhurst on Jan 2, 2015  For some time now, I’ve been reading in the Rapid City Journal about the ISL uranium mine that Azarga Uranium Corp. (formerly known as Powertech) proposes building at the Dewey-Burdock site between Custer and Edgemont. I wish it had been reported what a financial house-of-cards this penny stock really is. As a shareholder, I am very disappointed in the performance of the shares. Just over a year ago, I purchased shares at what appeared to be a bargain price of 10 cents. After all, previous investors paid as much as $4.45 per share. My “bargain” 10-cent shares are now worth almost 70 percent less than what I paid.

According to a recent Senate report, Goldman Sachs, the biggest trading firm on Wall Street, will wind down its uranium trading business. The South China Morning Post recently reported that the price of uranium is too low for new mines to begin operating, and that global supply will exceed demand well into the next decade.

Azarga’s CEO claims the company’s mine at Dewey-Burdock will be up and running by 2016. The old adage “buyer beware” may be applicable if you are considering buying this penny stock.

January 5, 2015 - Posted by Christina Macpherson | general