Q: big drop efr, despite production increase
would you consider current price a good
entry point.
thank you
would you consider current price a good
entry point.
thank you
5i Research Answer:
EPS of 62c beat estimates of 61c. Revenue of $37.9M missed estimates of $42.6M. Revenue and earnings surged as production ramps. EFR is preparing two additional mines for further production (expected within a year). The balance sheet is very strong with $190M in cash. Cash flow is still negative, but only $15M in the past year. This should soon move positive. While its size and sector add risk, we like what we see here. We would be interested in the $8.50 range. CCO would be a 'safer' uranium stock, and NXE we do like better overall, and it is also larger.