it is aru worth buying now for nupower I agree with Tibbs,Let's...

it is aru worth buying now for nupower I agree with Tibbs,

Let's face it, the market is made up mainly of sentiment, and at the moment, sentiment is red hot for uranium issues.

The fact that ARU has spent most of its life trading around $39m market cap is probably not the best way to approach it, as for most of that time, it was not recognsied as a uranium play, and Nolan's Bore is one of the very few Australian listed companies out there that currently has a JORC compliant uranium resource. Remember, Nolan's Bore and the JORC uranium resource will STAY WITH ARU, even after NuPower lists.

Once news of the NuPower announcement flows through to the rest of the market, it will put ARU in the spot light, increase its exposure to market players, and you will see more funds going into it.

That puts aside the fundamentals behind the rare earths material, which, IMO is worth more than the $39m it was trading at for most of its life.

Again, I will harp back to market sentiment, and comment, that most spin-offs such as these, do cause a surge in the 'mother company' share price. Rarely are these priced back to where they begin.

When all is said and done, you really have to ask yourself about the value propositions you wish to place on both Arufura and NuPower.

In my view, I do see ARU as a stock worthy or commanding a 50cent share price on its own right (conservatively). And I do think that the market will price NuPower (reasonably) between 80c to $1, representing the 26 to 33 cents premium. So on that basis, "my value proposition" is a conservative 76cents to 83cents per share.

I see upside on that as a simple result of the influence of positive market sentiment.

NuPower will be a hot issue, and I am keen to be in on that play, so my intentions will be to hold and take up my rights.