Yellow Cake (YCA) ☢️ - Share Chat

A Jersey-based firm which purchases and stores uranium, providing exposure to nuclear energy markets.

What a random stock addition. I thought you were adding stocks by some combination of market cap and voting and this is a tiddler that no one’s asked for!

Edit to add: and now there are two votes where there were none when I first posted. How odd.

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I think I requested this one as I’ve been watching them for a while now, but can’t find the thread. It’s good to have some tiddlers every now and then :slight_smile:

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I agree, I’ve said similar in other threads where items have loads of votes that people clearly seem to want, yet you get random stocks like this one being added!?

Investors Chronicles’ “BUY” tip given in June 2019 didn’t pan out.

Yellow Cake has stuck to its mandate in the 11 months since listing, raising cash and buying uranium. The spot price has gone up in that time and handed a nice uptick to the NAV. In light of the recent lull caused by the 232 report landing, it’s worth remembering the US government has been happy to slap tariffs on almost anything. Buy.

Risk and rewards from Simply Wall Street.

Is the current £1.89 a good price to buy? What does everyone think?

I bought at about this price in Nov. It’s holding it’s own, so I think I’ll just sit on it for a while in the hope they eventually hit paydirt

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Not a big deal, just a director cashing out a small amount.

Yellow Cake PLC said Non-Executive Director Sofia Bianchi disposed of GBP11,121 worth of shares in the company on Friday.

A total of 5,651 shares were sold at 196.8 pence per share, with Bianchi’s resultant holding of 13,186 shares representing a 0.01% stake in the firm’s issued share capital.

Maybe getting a bit of cash before it goes down further?

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Uranium intrigues me.

Yellow Cake (it’s on Freetrade) share price has never been lower: 152p. The company reported net asset value(NAV) at 211p per share to 31 Dec 2019.

That’s a 28% discount to NAV. It doesn’t mean you’re in for a 28% rally, as the share price may never get there for various reasons, but it’s an interesting data point.

Source:

https://www.proactiveinvestors.co.uk/companies/news/912048/yellow-cake-reports-net-asset-value-per-share-of-211p-for-december-quarter-912048.html

Edit - Just checked in the article, they reported having 9.62m pounds of physical uranium (U3O8). The current spot price is $24 (source), so they have $230.88m worth of U3O8 currently, with 87.99m shares outstanding, that’s $2.62 worth of U3O8 per share, so £2.14.

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According to news, the value of Yellow Cake’s U3O8 climbed 30% up between the start of 2020 and 17th April.

Uranium is one of the few materials that has gained in recent months, because big producers like Kazatomprom and Cameco had to suspend some operations because of Covid-19.

The share price is around £2.24 per share, compared to my previous post in March, it was £1.52.

It’s not share for newbie investors though I think.

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It’s quite easy to get your head around though once you look into it. Buy £200m of uranium at a cyclically low spot price and effectively stock rides the increase in uranium price. It was really compelling at £1.54, way below NAV