MM has been targeting the $4 area for BOE for weeks, and yesterday’s 5.2% sell-off took the stock back to the psychological level. The CEO’s recent aggressive sell-down of 70% of his holding along with softening Spot Uranium prices brought the move to fruition. Importantly, the 35% retracement in the stock should remind investors of the volatility of the stock/sector; hence, we take smaller positions when we go long these sorts of companies. We followed our plan yesterday and increased our exposure to fellow uranium play Paladin (PDN) when BOE hit the psychological level.
- We are bullish on the uranium space over the coming years, but PDN remains our preferred play over BOE.
MM is cautiously bullish towards BOE ~$4
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