Uranium Story

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UEC -- USA Stock  

USD 0.97  0.01  1.04%

It looks like Nexgen Energy will be up for a correction faster as its share price went up 0.58% today to Uranium Energy's 0.97%While some baby boomers are getting worried about energy space, we are going to go over both, Uranium Energy and Nexgen Energy as potential short-term investments. We are going to analyze some of the competitive aspects of both Uranium and Nexgen.
Published six days ago
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Will Uranium Energy (AMEX:UEC) investors shift to Nexgen (NYSEMKT:NXE)?
By analyzing existing forward indicators between Uranium Energy and Nexgen, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Nexgen with a short position in Uranium Energy. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Uranium Energy has an asset utilization ratio of 5.48 percent. This suggests that the company is making $0.0548 for each dollar of assets. An increasing asset utilization means that Uranium Energy Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Uranium or Nexgen is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Uranium Energy's Liquidity

Uranium Energy financial leverage refers to using borrowed capital as a funding source to finance Uranium Energy Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Uranium Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Uranium Energy's total debt and its cash.

Correlation Between Uranium and Nexgen Energy

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Uranium Energy together with similar or unrelated positions with a negative correlation. For example, you can also add Nexgen Energy to your portfolio. If Nexgen Energy is not perfectly correlated to Uranium Energy it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Uranium Energy for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between UEC and NXE for more information.

Acquisition or disposition of Uranium Energy securities by Scott Melbye

Legal trades by Uranium Energy insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Uranium insider trading alert for acquisition or disposition of performance based restricted stock units by Scott Melbye, EXECUTIVE VICE PRESIDENT, on 4th of August 2020. This event was filed by Uranium Energy Corp with SEC on 2020-08-04. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down the case for Uranium Energy

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Uranium Energy revenue. Based on the latest financial disclosure, Uranium Energy Corp reported 3.08 M of revenue. This is 99.99% lower than that of the Energy sector and significantly higher than that of the Uranium industry. The revenue for all United States stocks is 99.97% higher than that of the firm. As for Nexgen Energy we see revenue of 3.27 M, which is much higher than that of the Uranium

Uranium3.08 Million
Nexgen3.27 Million
3.1 M
3.3 M

Uranium Energy is projected to stay a bit over $1.04 in November

Maximum drawdown is down to 28.6. It may suggest a possible volatility slip. Uranium Energy Corp exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Uranium Energy Corp individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Uranium Energy future systematic risk. Uranium Energy Corp is a potential penny stock. Although Uranium Energy may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Uranium Energy Corp. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Whereas some firms in the uranium industry are either recovering or due for a correction, Uranium Energy may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 12th of October 2020, we see that Uranium Energy actively responds to the market. The company is undervalued with average probability of financial unrest within the next 24 months. Our present 30 days 'Buy-Sell' recommendation on the company is Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Uranium Energy Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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