Uranium miner Extract Resources is either a very disappointing stock or the analysts who cover it are very clever, or maybe both hold true.
Despite its most favourable aspect, in a local context, that it holds assets outside Australia and has managed to avoid the recent tax-related selling, the company's share price has been on the way down since last year.
The stock has spent the best part of the past seven months trading between $7 and $9, but analysts have kept faith all the way. The consensus analysts' target price has been sitting at an average $3 premium to the share price.
Brokers expect the price to hit $10.93 over the next 12 months.
But investors know that investing in uranium stocks is a long-term strategy based on the energy demand exploding. Extract Resources aims to develop its Rossing South project to reach production by the end of 2013 with a base rate production of 15 million pounds a year. Of the brokers that cover the stock, there are six "buy recommendations and one "hold", but no sells.
Extract shares are down 16 per cent year to date, underperforming both the S&P/ASX 200 Resources index and rival Paladin Energy, which have shed 13 and 7.7 per cent respectively.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)