Read on Twitter
Starting to see a lot of "who is likely to make the craziest gains this time round?" in the #uranium space from newcomers.
Everyone has their own favourite companies..
I& #39;m not going to try and pick a company, but here& #39;s what I& #39;d consider if that& #39;s what you& #39;re looking for..
Everyone has their own favourite companies..
I& #39;m not going to try and pick a company, but here& #39;s what I& #39;d consider if that& #39;s what you& #39;re looking for..
I know many say it& #39;s a vanity measure, but this gives you an idea of the EV$/LBS of the producers and their valuations last time round. Keep in mind May 2006 was not the end of the bull market, valuations went much higher.
But it& #39;s clear producers got EV/Lbs of $10+.
But it& #39;s clear producers got EV/Lbs of $10+.
Now look at the slide on this presentation Goviex at the 9:30 mark. https://www.youtube.com/watch?v=i9ml7bgADpw">https://www.youtube.com/watch...
You can see just for being a producer, those 6 companies on the left are "rated" at a higher EV/Lbs than the developers.
You can see just for being a producer, those 6 companies on the left are "rated" at a higher EV/Lbs than the developers.
Every ship will rise in this bull. We all know that. What we need to look for if you& #39;re after "crazy" gains is a re-rate in this cycle. What can cause a re-rate?
Major discovery / significant resource upgrade.. sure. But what I& #39;d look for is a small developer that can..
Major discovery / significant resource upgrade.. sure. But what I& #39;d look for is a small developer that can..
surprise the market and get into production in THIS bull cycle. Not only would it ride the momentum of the #uranium bull, but it would get a "re-rate" making it significantly outperform it& #39;s peers. If one of those developers sitting at less than $0.30 Ev/Lbs..
gets into production and gets that producer re-rate to a $10+ EV/Lbs valuation that we saw last bull cycle, that& #39;s when you get your 30x+.
$PDN got not one, but two mines into production last time. It got two re-rates within the bull and it went 1000x.
$PDN got not one, but two mines into production last time. It got two re-rates within the bull and it went 1000x.
$PDN is one of my top picks on the ASX but it won& #39;t go close to being the biggest % gainer this time. It& #39;s way undervalued but it& #39;s already had it& #39;s market re-rates. You need to find the company that hasn& #39;t yet - and can get into production within 3 years.
There& #39;s a handful of companies that have a chance. A few that aren& #39;t on the ASX that if they had of been, I would& #39;ve already bought the shit out of.. still might.
We& #39;re at a point where we can find 5-10x companies without even needing a re-rate.. an insane opportunity.
We& #39;re at a point where we can find 5-10x companies without even needing a re-rate.. an insane opportunity.
But if you& #39;re on the hunt for the biggest % gainer, you need to get that re-rate in a market that has momentum.
