hk0617, to answer your questions, I don't think Rio would dump ERA even if they could.
It's not consistent with them probably increasing their stake via this capital raising, or with them acquiring new uranium assets.
To me it seems clear that Rio still think uranium is a worthwhile place to invest. And why not? The demand for non-coal energy is likely to increase and the price of uranium is likely to rise.
I personally don't believe that ERA won't be able to extract value from its assets, but that's just my opinion. I think the company has been hit by a perfect storm; floods, tsunami/Fukushima, market meltdown, broker downgrades. More likely than not a good time to buy if you think they will survive, as I do.
Once this CR is bedded down a lot of negatives will be in the past and at some point there will be good news and positive sentiment will return.
ERA Price at posting:
$1.85 Sentiment: Hold Disclosure: Held
