Revisiting Fission Uranium: The Stock Still Looks Overvalued Based On Fundamentals

Summary

The net present value of Patterson Lake South is close to zero at today’s long-term uranium prices.

There is an ongoing disconnect between uranium prices and the share prices of uranium miners.

In view of this, I think this is a good time to sell Fission Uranium. Professor25/iStock via Getty Images Investment thesis In December 2020, I wrote a bearish article on SA about Canadian uranium miner Fission Uranium ( OTCQX:FCUUF ) and the result is embarrassing. I wrote that the Patterson Lake South (PLS) uranium project looked worthless and Fission Uranium’s valuation has increased by more than 50% as of the time of writing.As Peter Lynch likes to say, if you’re good, you’re right six times out of ten. Sometimes, the share price of a company keeps soaring despite the fundamentals of the business not changing. It’s just how the stock market works.Looking at current uranium […]

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