I own 10 plus uranium stocks from large to small, but am continually looking for undervalued ones to add. I found your thread here excellent. Do you provide recommendations I can review?
Next U private placement that you are interested in let me know. I have a group of sec accredited Americans that will want in. I like your portfolio! Also if you would like to see the options plays our trust is running and considering it may/may not bring you some value.
Thanks Maxime! Again a great analysis especially steps #1 and #3 might be great catalysts. I have my problems to get too bullish about step #2. I watched the video and found it very amusing. Especially the young guy is funny. My take:
- Sprott will not be "cornering" the market with this deal as this guy in the video puts it. To my understanding they take over a management contract to eventually manage an uranium fund. They will generate fees from this contract and not invest in uranium themselves. Just like ishares don't own ishares S&P ETF to take a long position in the US equity market. They earn a management fee to provide a vehicle for others without taking market risk. If Sprott would have wanted to take exposure this would certainly not be the way to do that. There is a positive element coming with this since the new management entity will have a financing line to buy outright spot in the market. But I wouldn't expect them to gamble with this money. I guess the idea of this financing option is to provide liquidity for the fund and not take an outright long position to leverage the fund. But maybe I got that wrong!?
- Former UPC will now be listed in New York instead as today of only in Canada. This certainly not bad news since this market place is more liquid. They argue that hedge funds and institutionals will now be able to enter the uranium market via a listed vehicle. Although I doubt that a hedge fund wouldn't have been able to buy UPC in Canada or Yellow Cake in London in the past (if they would have wanted) I agree that this could attract some retail interest. Maybe we see the retail crowds moving into the uranium space for a short while but how long are these guys going to stay if they come?
- Sprott will change the market maker mechanism for the former UPC vehicle. Instead of allowing the fund to have a 20% premium or discount to the underlying uranium holdings Sprott will now only allow a very narrow spread to the underlying Uranium NAV. Is this a game changer? Certainly not for me. As I understand this mechanism goes in both ways and when uranium prices fall for whatever reason the management/market participants will redeem shares just like with any ETF, right?
I own 10 plus uranium stocks from large to small, but am continually looking for undervalued ones to add. I found your thread here excellent. Do you provide recommendations I can review?
Next U private placement that you are interested in let me know. I have a group of sec accredited Americans that will want in. I like your portfolio! Also if you would like to see the options plays our trust is running and considering it may/may not bring you some value.
Thanks Maxime! Again a great analysis especially steps #1 and #3 might be great catalysts. I have my problems to get too bullish about step #2. I watched the video and found it very amusing. Especially the young guy is funny. My take:
- Sprott will not be "cornering" the market with this deal as this guy in the video puts it. To my understanding they take over a management contract to eventually manage an uranium fund. They will generate fees from this contract and not invest in uranium themselves. Just like ishares don't own ishares S&P ETF to take a long position in the US equity market. They earn a management fee to provide a vehicle for others without taking market risk. If Sprott would have wanted to take exposure this would certainly not be the way to do that. There is a positive element coming with this since the new management entity will have a financing line to buy outright spot in the market. But I wouldn't expect them to gamble with this money. I guess the idea of this financing option is to provide liquidity for the fund and not take an outright long position to leverage the fund. But maybe I got that wrong!?
- Former UPC will now be listed in New York instead as today of only in Canada. This certainly not bad news since this market place is more liquid. They argue that hedge funds and institutionals will now be able to enter the uranium market via a listed vehicle. Although I doubt that a hedge fund wouldn't have been able to buy UPC in Canada or Yellow Cake in London in the past (if they would have wanted) I agree that this could attract some retail interest. Maybe we see the retail crowds moving into the uranium space for a short while but how long are these guys going to stay if they come?
- Sprott will change the market maker mechanism for the former UPC vehicle. Instead of allowing the fund to have a 20% premium or discount to the underlying uranium holdings Sprott will now only allow a very narrow spread to the underlying Uranium NAV. Is this a game changer? Certainly not for me. As I understand this mechanism goes in both ways and when uranium prices fall for whatever reason the management/market participants will redeem shares just like with any ETF, right?