While many analysts agree that shares of Uranium Participation Corp (TSE:U) are grossly undervalued, the stock has been trading within a relatively tight range between CAD $4.70 and CAD $5.80 for over three years now. Recently, however the stock has been consolidating in an even tighter range indicating that a breakout may be likely. According to our technical analysis, a closing price above CAD $5.80 could lead to a breakout of the stock and the closing of a gap which has not been fill since 2012. Such a breakout would move resistance levels to around $8.40 and could cause quite a rise in the share price.
With a reported net asset value on November 30, 2015 of CAD$706.7 million or approximately CAD$6.11 per share any indication that the current trading range will be broken to the upside should lead to higher highs and lower lows in the long run. The stock has dropped 0.77% or $0.04 trading at $5.16, despite this positive news. About 183,585 shares traded hands or 48.25% up from the average. U has risen 6.00% since November 21, 2015 and is uptrending. It has outperformed the S&P500 by 8.26%.
Uranium Participation Corp is a Canada investment company. The company has a market cap of $595.60 million. The Firm invests all of its assets in Uranium, either in the form of uranium oxide in concentrates or uranium hexafluoride (UF6). It has 2.86 P/E ratio. The Company’s primary objective is achieving appreciation in the value of its uranium holdings through increases in the uranium price.