JMP Intraday Update - UraniumX (CSE: STMN) Trading At Cash Value? Here's my take.
With 33,000 hectares of prime real estate across the Athabasca Basin, and a team of veteran, all-star technical and geo professionals, the drop in share price, IMO, represents a unique opportunity.
UraniumX Discovery Corp (CSE: STMN) - $0.13/share
Hard to imagine we’d see STMN trading at cash value (~$8 million raised since Nov’25) with two exploration programs kicked off on two of three assets in the past week.
Newer subscribers can read my thesis on STMN here (December 1st) and here (January 14).
STMN announced this morning that they are kicking off their second exploration program in a week - Murphy Lake, the crown jewel, commenced last week; and Zoo Bay, a project with exceptional potential, just commenced a ground gravity survey.
Further, the CEO has been replaced with Kirby Renton (COO) whom I’ve spoken with a number of times - Kirby is a solid operator and I have faith that he will deliver for shareholders; especially from these levels.
I am of course adding shares to my growing position here - nothing has changed, only the share price due to warrant clippers jumping ship.
This, in my view, is a temporary situation, and a unique opportunity to leverage an artificially depressed share price.
What Rick Rule Says When Your Thesis is Taking A Beating
Legendary (and super wealthy) resource investors Rick Rule famously repeats his 50%-loss to mega-compounding experiences.
From a recent interview with Jay Martin:
“most of the real money I’ve made has come from positions that I’ve owned for five years, six years. And most of those positions have caused me to face, at one point in time or another, 50% share price declines from my acquisitions. So I’ve come to understand that for me, share price activity in the near term is much less important to me than value creation is.If I determine that the value proposition is really truly in my favor and the share price falls by half, in my declining years now, I’m almost certain to be a very large buyer. I’m almost certain to believe if I like the stock for a buck, thought it was going to three, and it falls to 50 cents, I have enough courage in my conviction and my experience now, that I’ll likely be a very large buyer.”
While I do not expect us to be carrying shares of STMN for 5-6 years, I do expect the share price to bounce back once the smoke clears from loose warrant clipping sellers.
STMN has a catalyst-rich year ahead, has successfully raised over $8 million on the back of a solid portfolio projects led by one of the most experiences technical teams in the Basin, and a drill program on Murphy Lake, situation a few KM from the richest uranium find on earth.
That is why I am adding shares here.
IMPORTANT DISCLAIMER AND RISK DISCLOSURE
This analysis is provided for informational and educational purposes only and does not constitute investment advice, financial advice, trading advice, or a recommendation to buy, sell, or hold any securities. The author is not a licensed financial advisor, investment advisor, broker-dealer, or registered investment advisor and does not provide personalized investment advice or recommendations tailored to any individual’s financial situation.
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