Stock Alert for Uranium Resources Inc. (URRE)
  • Stock Alert for Greenwood Gold Resources Inc. (GGRI)
  • Stock Alert for Portage Resources Inc. (POTG)
  • " />

    Stock Alert for Uranium Resources Inc. (URRE)

    Uranium Resources Inc. (NASDAQ: URRE) engages in the exploration, development and mining of uranium properties. Since its incorporation in 1977, the Company has produced over 8 million pounds of uranium by in-situ recovery (ISR) methods in the state of Texas where it currently has ISR mining projects. URRE also has 183K acres of uranium mineral holdings and 101.4 million pounds of in-place mineralized uranium material in New Mexico and a NRC license to produce up to 1 million pounds of uranium per year. The Company acquired these properties over the past 20 years along with an extensive information database of historic mining logs and analysis. None of the Company’s properties is currently in production.

    Share Statistics (20-Oct-11) FY2009 FY2010 % Chg Q22010 Q22011 % Chg
    Symbol URRE Revenue, $Mn 0.00 0.00 0.0% 0.00 0.00 0.0%
    Current price $1.39 Gross marg.
    52wk Range: $0.52-$3.98 Oper. margin
    Avg Vol (3m): 1,334,590 Net margin
    Market Cap. 130.00M
    Shares Outstanding 93.53M EPS, $ -0.18 -0.12 -33.3% -0.03 -0.03 0.0%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    URRE has gained 59.8% in the last five days; 43.8% in the last month; and 11.2% year-to-date.

    Shares in URRE spiked 19% on Tuesday after the Company announced the Nuclear Regulatory Commission (NRC) has reactivated its Source Materials License to conduct in-situ recovery (ISR) uranium mining in McKinley County, New Mexico. The license, which was originally issued in 1998 to URRE’s wholly-owned subsidiary, Hydro Resources Inc., has been in timely renewal status since 2003. The reactivation effectively enables the use of the license by the Company for the production of uranium as defined in the license.

    The Company said it will now proceed to renew the license for a standard 10-year term. During the renewal process, the active license may be utilized according to its present terms and conditions, which allows for the production of up to 1 million pounds per year from Churchrock Section 8 until a successful commercial demonstration of restoration is made, after which mining on other properties can begin and the quantity of production can be increased to 3 million pounds per year.

    “We are the only uranium company in New Mexico that possesses an NRC license authorizing current or new production and having it reactivated is a significant milestone which allows us to continue to move forward with our target production plans,” Don Ewigleben, president and CEO of URRE, commented in the press release.

    The Lewisville, Texas-based mining company has 27.4 million pounds of in place mineralized uranium material under its NRC Source Materials License. In total, the Company has 183K acres of mineral holdings in New Mexico and 101.4 million pounds of in place mineralized uranium material.

    Source: http://urre.client.shareholder.com/releasedetail.cfm?ReleaseID=615759

    Financial Summary

    URRE reported a net loss of $2.7 million, or $0.03 a share, for the quarter that ended June 30, against a net loss of $1.72 million, or $0.03 cents a share, in the year-ago quarter. The company did not report revenue.

    URRE’s cash at June 30, 2011 totaled $8.2 million, down from $11.1 million at March 31, 2011, and $15.4 million at the end of 2010. The decrease from the sequential first quarter reflects ongoing reclamation activities in Texas, the costs associated with the feasibility study and $500K of funding to collateralize the Company’s  financial surety obligations. Its cash balance at July 31, 2011 was approximately $7.3 million.

    Source: http://urre.client.shareholder.com/releasedetail.cfm?ReleaseID=599284

    Financial Strength (20-Oct-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 1.70 0.74 0.73
    Current Ratio (MRQ) 2.82 2.97 1.14 1.09
    LT Debt to Equity (MRQ) 1.90 18.98 12.95 102.61
    Total Debt to Equity (MRQ) 2.15 21.24 31.44 135.91
    Interest Coverage (TTM) 6.73 0.13 24.83

    Source: Reuters.com, SEC Filings.

    Technical Analysis

     

    Source: http://stockcharts.com

    URRE is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    The MACD for URRE currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Oct20-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Cameco Corp. CCJ 19.65 7.76B 17.86 14.24 3.43 3.09
    US Energy Corp. USEG 2.54 69.24M n/a 21.17 2.33 1.66
    Industrial Metals & Minerals Median       11.31 n/a 6.50 n/a
    Uranium Resources Inc URRE 1.39 130.00M n/a n/a n/a n/a

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

    Leave a Reply

    Your email address will not be published. Required fields are marked *