Yellow Cake: A Low-Risk Alternative In Uranium For A Good Price

Yellow Cake: A Low-Risk Alternative In Uranium For A Good Price

Jumbo2010/iStock via Getty Images Investment Thesis

Yellow Cake ( OTCPK:YLLXF ) is an investment company with its primary listing in London, UK. The company is a passive investment vehicle that invests in uranium and is very similar to the Sprott Physical Uranium Trust ( OTCPK:SRUUF ).

The stock has so far this year done marginally better than the overall uranium industry even though Yellow Cake has been punished substantially over the last few months as well.

As the below chart illustrates, the price of uranium has actually increased in 2022. So, the recent negative performance in Yellow Cake is primarily due to an increased discount to the net asset value of the company, making it more of a compelling investment for value investors. Figure 1 – Source: TradingView Recent Uranium Developments We have seen the price of uranium decline from the 11-year high around $65/lb that was achieved in April of […]

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