eResearch Blog: Purepoint Uranium Group
Stock of the Week: PUREPOINT URANIUM GROUP (TSX-V: PTU)
Selling at Only 1.3X Book!
Price (January 4, 2008):
$0.46
Update Report Price:
$0.41 (December 12, 2007)
Update Report Target Price:
$1.05 (1 year)
$2.10 (3 years)
High-Low since Update Report:
$0.51 - $0.35
On December 12, 2007, eResearch issued an Update Report on Purepoint Uranium with a one-year Target Price of $1.05. At the time, the stock was trading at $0.41. Since then, it reached a high of $0.51 and currently is trading near that level.
Purepoint is a Canadian exploration and development company, focused on uranium exploration in the world-class Athabasca Basin in northern Saskatchewan, where it has a large land position.
In addition to 7 of its own properties in the Basin, Purepoint has entered into strategic relationships with major uranium miners, Cameco and AREVA, for 2 additional Basin projects. Purepoint has the right to acquire up to a 50% interest in both of these projects and also act as operator.
The Company recently announced that drill results at its Red Willow property in the Athabasca Basin showed highly positive returns. In a comparative analysis conducted at the Saskatchewan Energy and Resources’ Precambrian Geological Laboratory, drill core from the Red Willow project compared closely to Cameco’s prolific Eagle Point uranium deposit, located about 15 km to the south. The Red Willow project, if it firms up, is in good company. Eagle Point is Canada’s longest producing uranium mine, with 133 million pounds of mined and proven resources. In addition, to reinforce this strategic location further, the Red Willow project adjoins the AREVA Resource’s claim group that contains the JEB, Sue, McLean, and Caribou deposits to the west, and UEX’s Hidden Bay project that surrounds Cameco’s Rabbit Lake, Collins Bay, and Eagle Point deposits to the south.
As we stated in our Update Report: “How could a junior mining company, having strategically-located properties and partners that are major mining companies, have a stock price that only trades at or near book value?”
We believe the shares of Purepoint Uranium Group are substantially undervalued. Once investor interest returns to the uranium sector, as well it must, Purepoint’s stock should participate in the anticipated recovery.
Selling at Only 1.3X Book!
Price (January 4, 2008):
$0.46
Update Report Price:
$0.41 (December 12, 2007)
Update Report Target Price:
$1.05 (1 year)
$2.10 (3 years)
High-Low since Update Report:
$0.51 - $0.35
On December 12, 2007, eResearch issued an Update Report on Purepoint Uranium with a one-year Target Price of $1.05. At the time, the stock was trading at $0.41. Since then, it reached a high of $0.51 and currently is trading near that level.
Purepoint is a Canadian exploration and development company, focused on uranium exploration in the world-class Athabasca Basin in northern Saskatchewan, where it has a large land position.
In addition to 7 of its own properties in the Basin, Purepoint has entered into strategic relationships with major uranium miners, Cameco and AREVA, for 2 additional Basin projects. Purepoint has the right to acquire up to a 50% interest in both of these projects and also act as operator.
The Company recently announced that drill results at its Red Willow property in the Athabasca Basin showed highly positive returns. In a comparative analysis conducted at the Saskatchewan Energy and Resources’ Precambrian Geological Laboratory, drill core from the Red Willow project compared closely to Cameco’s prolific Eagle Point uranium deposit, located about 15 km to the south. The Red Willow project, if it firms up, is in good company. Eagle Point is Canada’s longest producing uranium mine, with 133 million pounds of mined and proven resources. In addition, to reinforce this strategic location further, the Red Willow project adjoins the AREVA Resource’s claim group that contains the JEB, Sue, McLean, and Caribou deposits to the west, and UEX’s Hidden Bay project that surrounds Cameco’s Rabbit Lake, Collins Bay, and Eagle Point deposits to the south.
As we stated in our Update Report: “How could a junior mining company, having strategically-located properties and partners that are major mining companies, have a stock price that only trades at or near book value?”
We believe the shares of Purepoint Uranium Group are substantially undervalued. Once investor interest returns to the uranium sector, as well it must, Purepoint’s stock should participate in the anticipated recovery.
posted by Bob Weir at
10:21 AM
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