There are times when you seem to be doing everything just right, yet in the end you find yourself on the loser’s side instead of bearing the fruit of your efforts. Little consolation is that this is not your fault.
There are factors, events and circumstances which are beyond your control and you can do nothing to change them or avoid them. The recent disastrous earthquake in Japan is a very sad proof of these words.
People were not the only ones that suffered from nature’s wrath in Asia. Uranium companies worldwide are among the victims too. One of these is Uranium One Inc. (TSE:UUU), (PINK:SXRZF).
The stock of the company was severely struck by the turmoil in Japan. Yesterday, on a record for the last three years turnover of over 50M shares, UUU slumped almost 28%, finishing the day at $4.31. During the session, the stock decayed to a 3-month low of $4.
The cataclysm in Japan led to a nuclear crisis in the country. Several of the operating reactors had to be shut down. This could lead to uranium surplus and result in decreasing uranium prices.
However, most analysts and participants in stock forums suppose that the current negative reaction will be only short-term and prices will go up again in the long run. This probably holds true for the share prices of the uranium players.
After all, no matter how horrific they are, disasters come and go. Besides, a real alternative to uranium is still hard to find. For this reason, maybe, many analysts see the current fall in uranium stocks as a buy opportunity, supposing the prices will recover very soon.
This gives plenty of hope to managers of Uranium One too. Probably, it will not be long before we see UUU climbing to its high levels from February. Back then, the shares had noted a 3-year record at $7.02.
Of course, there is no guarantee this is really going to happen. Sometimes, reality turns out to be quite different from what we expect.
In Uranium One’s case, however, the recovery looks quite possible. A week ago, the company announced rather positive financial results for the past year. Some investors must have been delighted to read about record revenue of $327M for 2010, a 116% increase in the sales and a 106% rise in uranium production in comparison with 2009.
