The unhappy days for Mega Uranium Ltd. on the equity markets continue. The stock (TSE:MGA), (PINK:MGAFF) keeps dropping on the Canadian Exchange. The fall has been going on for a third consecutive session. No company news has been announced over the last two weeks.
Yesterday, MGA slipped another 4.08% on a turnover of 431 thousand shares. This is sightly below the trading daily average. The closing price was $0.47. Perhaps, the reason for the negative move of the stock is the lack of any positive announcements issued by Mega Uranium recently.
Something must be done to stop the unfavorable shares’ performance. Back in mid-February, MGA was worth around $1. Now, it is traded 53% lower. Probably, it is high time the company came out with some big news to impress investors and earn back their trust which seems a bit lost at present.
Maybe, the fundamentals might be of help for the stock. In the end of March, Mega Uranium had $9.4M in cash and a working capital of $36.6M. Looks impressive enough to me, but it is of much greater importance whether traders think the same.
Perhaps, they were mighty disgraced to see a net loss of $12.35M for the first quarter of 2011. It is not surprising for a company to incur losses, but this figure seems a bit scary.
Last, but not least. Mega Uranium is undervalued by traders – its market cap of $121M is well below the net worth of business. This implies a possible rise in the share price. Of course, “implies” gives us nothing certain.
