Is Blue Sky Uranium (CVE:BSK) In A Good Position To Invest In Growth?

Is Blue Sky Uranium (CVE:BSK) In A Good Position To Invest In Growth?

Just because a business does not make any money, does not mean that the stock will go down. For example, Blue Sky Uranium ( CVE:BSK ) shareholders have done very well over the last year, with the share price soaring by 148%. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.

Given its strong share price performance, we think it’s worthwhile for Blue Sky Uranium shareholders to consider whether its cash burn is concerning. For the purpose of this article, we’ll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). We’ll start by comparing its cash burn with its cash reserves in order to calculate its cash runway. How Long Is Blue Sky Uranium’s Cash Runway?

A cash runway is defined as the […]

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