If you read my old posts; it's been eligible to since August....

If you read my old posts; it's been eligible to since August. Below is AGE correction statements which details the issues they had last round; due to Global X using incorrect figures:



Last round was assessed based on June trading; where it didn't meet the criteria.

There are two subset in the URA ETF:

Pure Play 0% ---> 22.5% capped allocation
Non-Pure Play 0% ---> 2% capped allocation

EPM appears on the UxC - Uranium Supply Annual (Dec 2020)
https://www.uxc.com/p/products/pdf/TOC-USA.pdf

This is one pathway of the "watch" criteria, you need to be in the publication.
EPM is technically non-pure-play due to the various projects (same as GGG etc).

If you have been following the Sprott Uranium Trust; you'll notice it wasn't included in the Global X - URA ETF.
Two reason's it was technically unlisted back in June review period, they were partway in a scheme of arrangement with the Uranium Participation Corp.

The UxC - Uranium Supply Annual (Dec 2021) will likely be used by Solactive to review the next batch of watch holdings.
Which will include Sprott Uranium Trust, under the contents section #7 "Uranium Funds".
If you look at "YELLOW CAKE PLC" in the Global X URA ---- you'll see its 2.81%, technically under pure-play.
So Sprott Uranium Trust should be considered pure play also. (old reference is Uranium Participation Corp).

So run the math for the BIG-BANG. assuming say $1.4B USD (on URA ETF at $35 USD).
At about 2.81% that is about a whole days worth of volume on the Sprott Uranium Trust; from one single buyer.
So the few days after there is potential positive feedback loop on the Uranium Spot Price. Which incidentally has rebounded now to $46lb / $50lb (bids/sellers).

The interesting thing about EPM or AGE (to some extent) is they have a potential to blow the top; not once but twice. Due to limited shares to be acquired. So a couple of weeks prior - there should be Brokers (Agents for Global X) to accumulate some of the revised portfolio holdings; and then they will be transferred to Global X in exchange for shares. I noticed with VMY, the Brokers came in about two weeks before the official re-balance was to be implemented i.e. 1st Feb, but they were buying last two weeks of Jan, so the 1st Feb date is just a red herring.

1st top will be blown - when they try to accumulate shares
2nd is one Sprott Uranium Trust gets pushed up, and impacts the Uranium Spot Price -- which increase all Uranium holdings, URA ETF increases etc. repeat with diminishing impact.

Global X - do move their goals posts, so it's quite possible after this next round of review they might actually increase the criteria. Note they haven't put out any change just yet, they had already done so last Dec?
Otherwise they run the risk of instead of 0.4% allocations they trend downwards to 0.3%; the rebalancing will likely be disruptive for any holdings exiting the portfolio or any M & A (which is probably a bit early imo).

Thus far the Sprott Uranium Trust, has been somewhat restricted access to more US trading accounts.
They are trying to have it listed on the NYSE; but there is likely some risk of being blocked by lobbyist (for the Uranium Utilities).
If it does Sprott have mentioned a number of times there are 280,000 Sprott investors in the USA jurisdiction.

I think the above will generally scare more hedge funds from shorting in the sector once it get moving. Give you big example:
There is 10% short position on UUUU at the moment $1.45B USD MC, and it looks like it is playing chicken.
According to the fintel data cost price from the institutions are about $5.81 avg price, share price was $6.41 price (Tuesday) but over night it is $7.86,
Waiting for data to refresh but here is the 13th Oct Short data, so see if they have covered ..... and if not when?



We are in for a ride that's for sure. UP, down, UP, down....UP!