Uranium Energy Corp. UEC shares are trading lower after Kerrisdale Capital issued a short report on the stock.
What do we know about Uranium Energy Corp.'s management, according to a report by Kerrisdale Capital, is more like a penny-stock pump and dump than a legitimate mining company. The UEC has sold about half a million pounds of uranium since the company entered the uranium business in 2005. Kerrisdale alleges that most effort at the UEC was put into selling $465 million worth of stock, not including its IPO.
Uranium Energy paid approximately 30 different entities to publicize its stock. Some of these stock promoters were founded by UEC CEO Amir Adnani.
Kerrisdale does not believe that the fundamentals of the UEC align with the stock's market value. Kerrisdale estimates that the UEC is worth less than a third of its current $1.2 billion market value, and assigns a fair value per share of $0.96. The stock currently has a 50 day moving average of $3.71.
Uranium Energy Corp isn't a company designed to mine and deliver uranium energy, but it's a vehicle built to fool investors into buying huge amounts of stock promotion that's intended to enrich Adnani and insiders, Kerrisdale Capital states in their report.
Uranium Energy Corp is involved in mining, pre-extraction, extraction, and processing of uranium projects in the United States and Paraguay.
According to the data from Benzinga Pro, the shares of Uranium Energy Corp. were down 11.8%, trading at $2.82 at the time of publication. The stock has a 52 week high of $6.56 and a 52 week low of $2.93.