Uranerz Energy Corp. is an AMEX listed security that has been trading in a range between $1.33 and $7.65 over the past year. With 39,052,090 shares outstanding, a recent price of $4.68 gives a total market capitalization of $178,077,528. While there are certainly larger companies, Uranerz Energy Corp. has definitely earned its place in the pack. Last year, Uranerz Energy Corp. created $-0.33 in earnings for every share outstanding.
Uranerz Energy Corp. is currently priced by the market at 0.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.
With a share price under $50 a share and earnings per share below $1 a share, Uranerz Energy Corp. is unlikely to be an interesting value proposition.
Showing posts with label Uranium. Show all posts
Showing posts with label Uranium. Show all posts
Thursday, July 19, 2007
Wednesday, April 11, 2007
Japan looks to Kazakhstan for Uranium Supply
The IHT reports that Japan is trying to purchase stakes in uranium mines in Kazakhstan and Russia in order to protect itself from surging uranium prices driven by higher Chinese energy demand. In contrast to the United States, Japan already derives 30% of its power from nuclear energy. But a plan to curb carbon dioxide emissions has Japan planning to increase its reliance on atomic energy to approximately 40%.
Uranium prices are currently at a record $113 a pound, and even without an increase in demand, prices are likely to rise further due to problems with mines in Australia and Canada. A global effort to address greenhouse gas emissions will only exacerbate an annoying supply bottleneck.
As a practical matter, uranium production will never run up against the natural limits that face fossil fuels both because there is plenty in the ground and because uranium is so energy dense. But uranium mines have been floundering for decades because they simply weren't terribly profitable investments if no one in the richest country on earth wanted to buy any.
Now that companies like TXU are considering expanding nuclear power again within the United States, the prospect for higher margins for uranium mines looks good. Take a look at this chart from The UxC Consulting Company, LLC:
Uranium prices are currently at a record $113 a pound, and even without an increase in demand, prices are likely to rise further due to problems with mines in Australia and Canada. A global effort to address greenhouse gas emissions will only exacerbate an annoying supply bottleneck.
As a practical matter, uranium production will never run up against the natural limits that face fossil fuels both because there is plenty in the ground and because uranium is so energy dense. But uranium mines have been floundering for decades because they simply weren't terribly profitable investments if no one in the richest country on earth wanted to buy any.
Now that companies like TXU are considering expanding nuclear power again within the United States, the prospect for higher margins for uranium mines looks good. Take a look at this chart from The UxC Consulting Company, LLC:
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