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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (11157)	5/16/2007 10:52:29 AM
From: TheSlowLane	Respond to of 30224

Well done! For the benefit of those who follow fundamentals...I called the company yesterday to get their opinion on the market activity. The most plausible explanation is that the stock is simply a victim of its own previous stellar performance. Investors that got into the $30MM PP 4-5 months ago are able to realize over 100% on their short-term investment. Likewise, anyone that got in early last year is still sitting on considerable profits. The other side of that, of course, is the people that bought during mid-April. There was huge volume in mid-April as many bought above the $4 and some above the $5 level. Those unfortunates have been treated to the U stock ride from hell in just about a month. I imagine a few of those folks are now experiencing a diminished appetite for U stocks and this one in particular. The biggest concern I have on the fundamental side is the lack of a milling agreement. I got the sense that Denison is in no hurry at all to sign toll milling agreements for the White Mesa plant. I will not speculate as to the reasons for this but they may have issues that they are dealing with that are discouraging them from entering into contracts (that have penalties for failure to deliver) at this particular time. Worst case, there are other mills in the area and the management team of EFR.TO has experiencing building mills. It sounds like the regulatory environment is getting more favorable and that a mill could be permitted, designed and built within a few years.