Thoughts on Boss Energy (BOE)
In your 19/11/24 opinion article, BOE was at $3.07 and you guys thought it was a decent risk/reward price. I am looking to buy some asap, at $2.51 today’s price. Do you have any further opinions of today’s price?
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Answer
Hi Scott,
As you say we were cautiously bullish on BOE last month: “We haven’t been fans of BOE over the last 12-months, but around $3, we believe value is on offer for patient investors.” Also we noted that “their processing plant is still in construction, and having witnessed poor execution from PDN and PEN over recent weeks, it’s not surprising that investors are cautious, at best”.
Our preference in the local uranium space is still Paladin (PDN) but its also endured a tough year although its bounced slightly since mid-November. This remains a volatile space with the traders “loading up on shorts” BOE is now the 2nd most shorted stock on the ASX with 14.2% of shares short sold, just behind PDN with 16%.
- We continue to believe uranium will play an integral role in the worlds transition to carbon neutral as we attempt to meet the surging energy demand from AI.
- The arrival of the Tech Industry as purchasers of nuclear capacity is game changing for uranium demand. The tech firms (Microsoft, Amazon, Google & Meta) have all realised that the demand for reliable, clean and always-on energy to power their AI data-centres demand nuclear energy.
Even without SMRs (Small Modular Reactors) we continue to see a big supply deficit for uranium which will drive uranium prices significantly higher this decade. Demand from SMRs will turbo-charge this.
- We want to maintain our exposure to uranium but it its likely to be an ongoing volatile and at times uncomfortable ride.
