those shorting EXT are playing that good old fashioned game of russian roulette. It well may be that Z5 results and the BFS are released late this month (if not early Feb when the market is fully functioning again after the Xmas break). Talk about standing in the path of the tornado as a 'shorter' when that happens, coupled with a spot u3o8 price that continues its rise on massive vol last month.
Oh what a year lies ahead for the long term EXT holders. Chart is setting for another run but more on that later.
Latest from trade tech:
December was a record month for the spot uranium market in many respects. The Exchange Value, which rose to $62.00 per pound U3O8, an increase of $1.75 from the November Value, is the highest value reported since September 2008. Over 2.2 million pounds U3O8 equivalent changed hands during December in 16 transactions, which brought total spot sales volume for the year to a record-breaking 42.8 million pounds U3O8 equivalent. The last time spot market activity was close to this level occurred two decades ago, when annual spot sales volume for 1990 totaled 40.6 million pounds U3O8. This record volume helped propel the Exchange Value from $42.25 at the beginning of the year to its current level.
The ambitious nuclear program in China and announcements last month of two new contracts for the purchase of long-term uranium attracted renewed attention from the financial and investment sectors and helped propel the price movement. The emergence of significant mid- and long-term demand combined with discretionary buying to exert further upward pressure on prices during the fourth quarter.
The spot uranium price did take a slight dip mid-month as several sellersincluding producers, traders, and intermediariescame to the market seeking to place material before year end. This material was quickly absorbed, however, and prices firmed. Currently, spot supply is extremely thin with most sellers now holding firmly to offer prices and looking ahead to rising demand during the first quarter of 2011
EXT Price at posting:
$9.11 Sentiment: LT Buy Disclosure: Held
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