How ironic – NexGen Energy (NXE, TSX) graduates from the Venture to the “Big Board” in mid-July and then $200 million is wiped off its market cap in just 2 months, without even any bad news! NexGen’s total market cap erosion from its high in early June to its intra-day low of $1.81 last Friday was a staggering $320 million.
There’s nothing complicated or mysterious about NexGen’s recent plunge – the stock simply got overbought from a technical perspective and buyers’ “exhaustion” took hold. After trading as high as $2.86 in early June, and commanding a market cap of as much as $870 million, NXE started a very normal retracement. This has created new opportunities for short-term traders and investors who may have missed out on the double in this stock between late March and mid-April.
The company’s Arrow Uranium deposit at its Rook 1 Project in the Athabasca Basin is as world class as ever with an Inferred resource estimate of 3.5 million tonnes grading 2.63% U3O8 (202 million pounds U3O8), based on holes drilled and assayed to the end of October last year (there have been some great drill results since then).
Arrow remains open in most directions and at depth as drilling continues to intersect high-grade mineralization. The footprint for this important discovery is massive:
Strike – 870 m
Width – 280 m
Vertical – 820 m
Just imagine if the Gold stock you owned had a high-grade deposit of that magnitude and was getting even bigger!
Click here to quickly become a BMR member and read the rest of this article on NexGen and opportunities adjacent to it, or login with your username and password…
yes big float,but great buy for ske this morn.
Comment by Laddy — September 20, 2016 @ 6:33 am
Yes, if SKE was a smart buy at .145 last week, as it was, same now—-looks like it was a fund that was selling this morning (scared ahead of Fed Day tomorrow?), but we know how foolish some of those funds can be. The stock merely dropped to its rising 20-day SMA which is a normal pullback and SUPPORT.
Comment by jON - BMR — September 20, 2016 @ 7:38 am
Jon
News out today on Deveron any comments?
Comment by GREGH — September 20, 2016 @ 9:31 am
I’m in meetings most of today, Gregh, and will look at it tonight.
Comment by Jon - BMR — September 20, 2016 @ 9:33 am