Yellow Cake: A Way To Play The Uranium Bull Market, With A Discount To Net Asset Value

RHJ Investment Thesis

Yellow Cake ( OTCQX:YLLXF ) is an investment vehicle focused on uranium, with its primary listing in the UK. I have covered the stock many times in the past, and those articles can be found here .

The stock together with other uranium equities, represented by the Sprott Uranium Miners ETF ( URNM ) in the chart below, had an excellent year. They have outperformed most broad equity indices by a wide margin. Figure 1 – Source: Koyfin Yellow Cake has recently seen a slight retracement, while the uranium spot price has mostly been unaffected by the weakness in the market. So, the stock is at the time of this writing trading with an attractive 12% discount to net asset value ("NAV"), which has led me to add the company back to my portfolio. In comparison, the Sprott Physical Uranium Trust ( OTCPK:SRUUF ) closed yesterday with […]

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