Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (CAD) | Target 1 (CAD) | Target 2 (CAD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 24 Sep, 24 | URC | Buy | CAD 3.28 | CAD 3.62 | CAD 4.0 | 8 days | 22.0% |
Data Powered by EOD Historical Data (“EODHD”).
Uranium Royalty Corp. operates as a pure-play uranium royalty company. The company acquires, accumulates, and manages a portfolio of geographically diversified uranium interests. Uranium Royalty Corp. has royalty interests in the McArthur River, Cigar Lake / Waterbury Lake, Roughrider, Russell Lake, Russell Lake south, and Dawn Lake projects in Saskatchewan, Canada; Anderson and San Rafael projects in Arizona; Lance and Reno Creek projects in Wyoming; Church Rock and Roca Honda projects in New Mexico; Dewey-Burdock project in South Dakota; Slick Rock project in Colorado; Langer Heinrich project in Namibia; and Michelin project in Newfoundland and Labrador, Canada; Energy Queen and Whirlwind project in Utah; and Workman Creek projects in Arizona. The company was incorporated in 2017 and is headquartered in Vancouver, Canada.
Debt-Free Company
Enhanced Liquidity: Current Ratio of 159.25x in Q1 FY25 vs Industry Median of 1.15x
Negative Operating Income: Operating Income of USD -2.20 mn in Q1 FY25
Negative Profitability: Net Income of USD -2.16 mn in Q1 FY25
Reliance on Royalty Streams, Limited Diversification, Acquisition Risks, Market Sentiment and Investor Perception. etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 3.28 | 2.7 | 3.62 | 4.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (on the Daily Chart)
On the daily chart, URC stock prices are trading above the downward sloping trendline breakout level and continuously taking support from the trendline. The recent upside movement in the stock is backed by increasing volumes, further supporting a positive bias. The next resistance level is placed around CAD 3.73, and the stock may test that level in the short term (2-4 weeks).
Technical Indicators Analysis (On the Daily Chart)
On the daily chart, the momentum oscillator RSI (14-Period) is showing a reading of ~63.71 levels, indicating positive momentum. Moreover, the weekly volumes also seem supportive of the upside movement. Further, the stock is trading above the 21-period SMA, which may act as a support level.
As per the above-mentioned price action and technical analysis, Uranium Royalty Corp. looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock
Data Powered by EOD Historical Data (“EODHD”).
Sector: Energy Industry: Uranium
| Company | Change (CAD) | Price (CAD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| URC Uranium Royalty Corp. |
-0.01 0.33% | 3.01 | 54.29 | 129.87 | 10.81 | 1.68 | 10.51 | 61.06 |
| CCO Cameco Corp |
-0.64 0.84% | 75.48 | 279.00 | 47.85 | 11.91 | 5.08 | 11.68 | 55.49 |
| NXE NexGen Energy Ltd. |
-0.04 0.40% | 10.01 | 60.29 | - | - | 4.86 | 64.24 | |
| DML Denison Mines Corp |
-0.04 1.43% | 2.75 | 48.00 | - | 651.63 | 4.22 | 603.27 | 37.81 |
| EFR Energy Fuels Inc |
-0.17 2.18% | 7.63 | - | 625.00 | 45.67 | 3.35 | 28.46 | -29.0433 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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