Opening this quarterly with 'challenges' is interesting language to use.
When they raised 2million$ last year at 3.6c, the share price shot to 4.6c and started getting sold off with bombardment of large sellers down to 3c. At this time it was obvious to me the share price would get hammered and I predicted a 1.5c retrace price. This has now happened. But now that the share price is down here for some time and the language used in the announcement coinciding with the large parcel sellers the past 7 weeks in particular i can only assume they have a lower price in mind next.
Noticed early this month the share price was bought up to 2c from 1.5c on mixed volume, within a day or the large parcel seller arrived to sell down share price back to 1.5c with several million more to sell at 1.6c.
Fact they announce the quarterly as late as possible, using negative sentiment on all projects tells me they don't want the share price higher at this time. They used positive language around the uranium/gold and sands assets between april2020-early2021, and from there, been negative/stale and has seen the share price sold down 70% so far.
From here I can only assume the share price will see strong volatility from these large seller's down to 1.2c on Monday with an aim for a market cap of around 3-4 million$. approximately 1million dollars per project, despite having a world class, high grade, shallow, ISR and low environmentally impacting uranium resource valued at approximately $2billion.. to be valued at only 1million$ if they share price tanks, again.
Buying range from this negative quarterly will be between 0.005c-.008c. Overall potential buying opportunity between 0.005c-0.012c. Now i could be wrong as the companies value has already dropped 70% from the raise at 3.6c last year but i do not see anything positive coming from Cauldron this year, despite all the hope they gave in early march of the phase2 drilling program with continuous new flow (there has been zero). Coupled with the forcing of sell orders large enough to continually sink the share price each week seems they have not finished selling down this company to skin and bones yet.
Also the last 2 quarters now have stated several interests in sand supply, this quarter particularly they state 'continued to receive', meaning new interests. So they have received several ongoing interests for 6 months, meaning quite a bit of interest and have not yet made any arrangements to supply. Why?
The uranium asset which is the flagship of Cauldron and has a 2billion$ value, has no hype or excitement as they were pushing in 2020 and early 2021 which saw the share price stable at 4-5c. Post raise at 3.6 instantly sold down to 1.5c, with a new raise at 1.7c and now with constant selling holding the price down at these levels below the 1.7c raise price, and imo with a new outlook of forcing it down even further 50% perhaps.
Not sure what management are doing here with this company but at this stage has been very poor, considering the hype pushed throughout 2020 and early 2021, and has since gone quiet and uninspiringly dead on all project fronts, uranium, gold and sand. Despite having continual interests in sand supply for 6 months, a $2 billion low cost ISR high grade uranium asset, and a high grade gold underground mine in the golden triangle, in phase 2 of drilling. each of these projects current value of $2.7million, with the obvious continual sell pressure post 2020-2021 hype of all assets, tells me the share price will probably see another push down of approximately 50% from current price.
Should offer a great buying opportunity 0.005c-0.012c for long term hold, especially the U asset that has a current $2billion value.
Why buy 1million shares currently for 15k$, when potentially can buy 1million shares for 5k$ after this negative language used i quarterly.
Let's see what happens next week to confirm the continued down trend of cauldron shares.
All the best(this is not buying or selling advice, just my observations following CXU since 2015) and GLTA
CXU Price at posting:
1.6¢ Sentiment: None Disclosure: Not Held
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