Kevin Bambrough on Twitter: "Been thinking more about what’s happening with SPUT $u.un $u.u $spruuf The impact of the shares no longer being approved for trading in the USA via OTC is nearly entirely to blame for the current down trend. Here’s why and what happened: (securities lawyers can help here)" / Twitter.
For anyone interested in Uranium, and scratching their heads a bout recent price action I would highly recommend reading the above thread as it fully explains why the SPUT (and with it the U Spot) has come down in recent weeks.
It comes down to the following: When Sprott started its SPUT they were traded OCT in the US. This accounted for over 50% of all buying volume (just for an OCT listing!!). Unfortunately due to a regulation change for foreign trusts the brokers in the US have been forced to stop buying of SPUT so this cut buying volume in half! To make things (much) worse, selling was still allowed.... So all volume coming from the US over the past weeks has been selling only!
Luckily this should dry up quickly as SPUT was only available for a few weeks in the US. Despite the heavy selling in the US the SPUT trust has still managed to gobble up quite a bit Uranium with 600K lb last week and already 1 million lb this week so far which is amazing considering the circumstances!
SPUT has already applied for a NYSE listing and this could be approved anytime but by Q1 next year at the latest if we are to believe Kevin.
If SPUT can manage to buy the amounts of Uranium they currently are with very strong head winds and based on Canadian buying volume alone... Imagine what will happen when the US turn from a seller only to by far the biggest buyer! Good times ahead!
92E Price at posting:
69.5¢ Sentiment: Buy Disclosure: Held
