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SXR

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Not applicable
Over the last six months the uranium price has doubled while the SXR share price has basically been unchanged (although it did have oretty sharp run up prior to November). Once the merger with Urasia becomes unconditional and it is bedded down it will have producing assets. The company's forecast is for production volumes to increase 10 fold - from 2m pounds in 2007 to nearly 20m pounds in 2012. So the question is why hasn't SXR performed. Is it: a) the market thinks the uranium price will collapse b) the market do not believe the production ramp up forecast c) the market do not like the new management d) a temporary blip while the uncertainty regarding the UrAsia merger persists. In my view SXR has significant upside on a one year view.
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7 REPLIES 7
destech
Contributor
Agreed - A lot of the U price has not shown in the results yet either. And I never cease to be amazed how a report of 2cps loss can result in a 622cps drop in price, and counting. However, it is showing significant weakness right now (along with the rest of the market). So, do you sell before weakness continues, or do you accumulate more . . . ?
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john_1
Super Contributor
I agree with the fact this has upside infact I am sitting here looking too accumulate at these levels, but lets not forget this company was at R4.40 ( prior to it merger with SXR)in January of last year so I think alot of the good news is in the price
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destech
Contributor
Hmmm . . it seems expensive if you look at it that way. A lot of shares did this, though, and some kept going beyond all expectations. Oh, I just remembered I'm not talking to you anymore . . something about you owing me an analysis on BRN . . ? At an EY=66. How-come it's not getting snatched up?
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john_1
Super Contributor
Hmmm... Zing I wont take it personally as it seems you dont talk to anyone anymore.
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destech
Contributor
Ouch . . touche . . and all of that! But see what I mean . . still no BRN! tsk tsk
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john_1
Super Contributor
Nah! bigger fish to fry.
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vishal
Regular Contributor
I think the price is going to rise over the latest SENS. OMO
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