Just because a business does not make any money, does not mean that the stock will go down. Indeed, CanAlaska Uranium ( CVE:CVV ) stock is up 182% in the last year, providing strong gains for shareholders. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse.
So notwithstanding the buoyant share price, we think it’s well worth asking whether CanAlaska Uranium’s cash burn is too risky. In this report, we will consider the company’s annual negative free cash flow, henceforth referring to it as the ‘cash burn’. First, we’ll determine its cash runway by comparing its cash burn with its cash reserves. Does CanAlaska Uranium Have A Long Cash Runway?
A cash runway is defined as the length of time it would take a company to run out of money if it kept […]
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