Uranium Res Inc (NASDAQ:URRE)

CAPS Rating: 1 out of 5

The Company was organized in 1977 to mine uranium in the U.S by using an in situ recovery mining method, a process by which groundwater is fortified with an oxidizing agent and pumped into the ore body causing the uranium contained to dissolve.

Results 1 - 20 of 48 : 1 2 3 Next »

Recs

0
Member Avatar jed71 (68.91) Submitted: 11/19/2014 10:29:02 AM : Underperform Start Price: $2.20 URRE Score: +5.78

I think some shareholders are being deceived here and not doing their proper due diligence. I’ve heard it across quite a few different industries; “this time it’s different” or “the turnaround is working.” In this particular case, I’m not sure what the company is going to do to turn this sinking ship around. This firm has received a slight pop in share price over the past few weeks due to a couple of news releases. These are the two that I think are impacting the share price the most:

“The Company reduced its cash mineral property expenses and its general and administrative expenses by approximately 13% during the nine months ended September 30, 2014 as compared with the same period in 2013. This reduction reflects the Company’s continuing efforts to reduce the cash burn rate.”

“On September 5, 2014, the Company, its wholly owned subsidiary Uranco Inc. and Rio Grande Resources Corporation entered into an Asset Exchange Agreement whereby on November 6, 2014 the Company acquired from Rio Grande Resources certain uranium properties located in South Texas near the Company’s processing facilities. In exchange for these South Texas properties, the Company transferred to Rio Grande Resources two parcels of fee-owned mineral rights and a royalty interest in the Roca Honda area of west-central New Mexico. The Company has retained certain leases, mining claims and fee-owned mineral interests on separate parcels in the Roca Honda area.”

This probably all seems great on the surface, but it’s pretty meaningless news given the company continues to produce no revenue and it doesn’t look like that’s going to change anytime soon. The next section out of the most recent 10-Q is the section I think is the most important:

“The Company ceased uranium production activities in 2009 due to sustained low uranium prices and does not anticipate receiving significant sales revenue and related cash inflows for 2014. Since ceasing production, the Company has primarily financed its operations through equity and debt financings. The Company has been successful at raising capital in the past, most recently with the completion of a registered direct offering in February 2014 for net proceeds of $9.3 million as well as securing debt financing in November 2013 that provided the Company with $8.0 million in cash. The Company also has an existing ATM Sales Agreement that allows the Company to sell from time-to-time, shares of its common stock in at-the-market offerings having an aggregate offering price up to $15.0 million of which the Company has a total of $6.3 million for future sales available as of November 5, 2014. While the Company has been successful in the past raising funds through equity and debt financings, no assurance can be given that additional financing will be available to us in amounts sufficient to meet our needs or on terms acceptable to us. In the event funds are not available, we may be required to change our planned business strategies.”

Listen, normally I wouldn’t second guess a decision such as this, but aren’t they in the BUSINESS OF MINING AND SELLING URANIUM?!?!? If the prices are low, they are low – SUCK IT UP. That doesn’t mean you just stop selling!! I mean, produce at least SOME revenue for your shareholders to offset losses!! Otherwise, it’s hard to understand WHY YOU ARE EVEN IN BUSINESS. The company also seems to be more than willing to sell stock at any price necessary to keep the lights on:

“During the nine months ended September 30, 2014, the Company sold 788,186 shares of common stock for net proceeds of $2,586,358 under its ATM Sales Agreement. Under the ATM Sales Agreement, the Company may from time to time sell shares of its common stock having an aggregate offering price up to $15.0 million in ?at-the-market? offerings, which shares are registered under the Company’s currently effective registration statement on Form S-3. The Company filed a prospectus supplement dated July 2, 2014 with the Securities and Exchange Commission in connection with the offering, relating to shares of its common stock having an aggregate offering price of up to $4.1 million.”

Unless my math is off, they were selling shares at an average of around $3.30 per share. While this doesn’t seem bad on the surface, let’s remember the stock was sitting at more than $125 per share in 2007. Today’s price of $2.20 per share represents a more than 98% loss in value since that time. They seem to think they have enough cash to make it through 3Q of 2015. I am seeing where they’re burning about $3MM per quarter and have less than $8MM in cash remaining. And some of that cash seems to be restricted. I truly think this is a terrible stock to be long, but apparently many shareholders disagree.

Recs

0
Member Avatar SqwiiTrader (< 20) Submitted: 10/30/2013 5:53:17 PM : Outperform Start Price: $2.45 URRE Score: -31.92

Uranium stock - IHS will go

Recs

0
Member Avatar Corproshop (56.99) Submitted: 8/13/2013 3:14:47 PM : Outperform Start Price: $3.58 URRE Score: -63.43

Uranium. Will. Be. Higher.

Recs

0
Member Avatar zcat101 (< 20) Submitted: 8/5/2013 11:12:56 AM : Outperform Start Price: $3.66 URRE Score: -63.91

Japan's new ruler wants back into nuclear energy. Uranium will be in demand

Recs

0
Member Avatar blackhorses49 (< 20) Submitted: 9/5/2012 11:17:27 PM : Outperform Start Price: $21.40 URRE Score: -145.77

Siri

Recs

0
Member Avatar germanywx (< 20) Submitted: 3/8/2012 10:33:05 AM : Outperform Start Price: $9.60 URRE Score: -129.97

After a terrible 2011, and with India and Chinese markets clamoring to get into the nuclear energy age, the energy market will see a boom in the next year.

Recs

0
Member Avatar mojomomoney (< 20) Submitted: 2/26/2012 11:50:47 PM : Outperform Start Price: $10.10 URRE Score: -131.55

URRE is in bed with Cameco Resources. There is no doubt in my mind that they will fail to implement Phase III drilling in November of 2012. Cameco always puts their money where their mouth is and this is going to be huge!

Recs

0
Member Avatar toadaly (68.46) Submitted: 6/27/2011 2:24:16 PM : Underperform Start Price: $15.85 URRE Score: +148.30

It's been a rough spring for uranium producers. The low cost producers, Cameco and Uranium One, can weather the storm. I have my doubts about Uranium Resources. They're not going to be profitable unless uranium prices stay above $100/lb, whcih seems unlikely in the near term. On top of that, insiders have been selling, including a couple of million shares this past Friday.

A company like this is not rationally priced at a price to book of 5, as it currently is. I expect it to test it's 52 week lows, trading in the $0.5/share range within the next few months. If you like uranium and are interested in a speculative play with potential huge returns, look to Denison mines instead, and for less speculative investing, turn to Cameco which is profitable even at these reduced uranium prices, and pays a dividend as well.

Recs

0
Member Avatar juanmckenz (< 20) Submitted: 5/27/2011 2:54:20 PM : Outperform Start Price: $19.50 URRE Score: -144.71

India make plans for nuclear developments that will more than double global uranium production. China's Nuclear Energy Association announced two weeks ago they will boost atomic capacity as much as eight times by the time 2020 rolls around.

By 2030, India's Atomic Energy Commission is increasing production 13-fold.

Turkey has a 4.8 GWe reaction site under construction on its Mediterranean coast and plans for a similar project on the Black Sea. They're looking to build a third reactor on the Bulgarian border.

The United Arab Emirates has construction plans for four 1,400 MWe reactors. And Sweden just reportedly reversed its moratorium on new reactors.

The demand is very real, folks — despite the horrific events in Japan.

But that demand won't be met, so long as supply remains tight...

Recs

0
Member Avatar chris12tom (< 20) Submitted: 5/24/2011 12:55:03 PM : Outperform Start Price: $15.70 URRE Score: -143.72

oversold. uranium prices will go up.

Recs

0
Member Avatar reachmygoals1 (< 20) Submitted: 4/22/2011 7:59:00 PM : Outperform Start Price: $19.80 URRE Score: -144.41

soon as japan's crisis of nuclear fizzles, soaring

Recs

0
Member Avatar Bittersweet614 (23.22) Submitted: 4/6/2011 3:00:05 PM : Outperform Start Price: $21.31 URRE Score: -145.23

In spite of the recent Nuclear disaster in Japan, there are very bright days ahead for Nuclear Energy.
Obama approved a $8B loan provision last fall for the construction of new nuke plants. China and India have plans for about 100-150 new plants within the next 10 years, and have said they are moving forward with their projects.

Recs

0
Member Avatar DrJoelMD (< 20) Submitted: 4/6/2011 1:52:43 PM : Outperform Start Price: $21.45 URRE Score: -145.54

Nuclear power isnt going anywhere. News headlines kills stocks. Nuclear power will continue to grow and this company will be the Saudi Arabia of Uranium. One of the largest supplies of uranium in the world. Coincidentally, their new find in New Mexico will be pumping out uranium at full force by 2014, right around the same time that demand should be going up exponentially.

Recs

0
Member Avatar ryanngina (< 20) Submitted: 4/5/2011 6:12:16 PM : Outperform Start Price: $21.00 URRE Score: -144.78

if anyone believes,nuclear energy is by by,the had better buy buy lol,its not going anywhere (remember BP????)

Recs

0
Member Avatar bkorner (< 20) Submitted: 3/27/2011 1:32:36 PM : Outperform Start Price: $21.50 URRE Score: -147.72

The worldwide demand for uranium will most certainly increase causing prices to rise. With the recent pulllback this company's share price must go up./

Recs

0
Member Avatar jrknott (< 20) Submitted: 3/25/2011 12:45:46 PM : Outperform Start Price: $22.05 URRE Score: -147.81

Can't get much more bad news, but demand won't change dramatically in the near to intermediate term.

Recs

0
Member Avatar wsantan (< 20) Submitted: 3/19/2011 3:21:02 PM : Outperform Start Price: $22.60 URRE Score: -150.91

7 billion people in the world, media overblowing meltdown in Japan means this is a money make in the long term.

Recs

0
Member Avatar GoofyScreenName (< 20) Submitted: 3/5/2011 6:25:16 PM : Outperform Start Price: $29.40 URRE Score: -148.83

just because !

Recs

0
Member Avatar mccrackes001 (< 20) Submitted: 1/4/2011 10:20:21 PM : Outperform Start Price: $32.50 URRE Score: -157.25

Demand for Uranium!!!

Recs

0
Member Avatar maniacdog10 (50.67) Submitted: 12/24/2010 9:09:56 AM : Outperform Start Price: $32.70 URRE Score: -159.29

uranium

Results 1 - 20 of 48 : 1 2 3 Next »

Featured Broker Partners


Advertisement