takeover, page-27

Raiderup

You are correct of course, there are stocks that are overpriced and under-priced. Picking these is one of the main investment strategies.

When I say "the market is always right" it is a broad statement in counter to posts like those which state that MEY should be priced at $4/lb today on today's realities and somehow analysts have overlooked this fact. These views also follow on to imply that when analysts/buyers/investors/funds discover the error of their ways, with no fundamental changes, the SP will correct itself upwards. This is incorrect, IMO.

Yet again, IMO, MEY is priced at a level of an option on a higher U prices in the future, and an added bit based on a probability of Areva's takeover. This is why a massive increase in resource had no impact on SP whatsoever. We can have X tons, 2*X tons, 10*X tons it will make very little difference until U price makes our tons economical. In that sense, the market is right.

Cheers