The First Uranium Whiplash

Although I don’t have a stake in the equity of First Uranium (TSX: FIU), I note with some mild amusement how a company can go up and down so rapidly in a short period of time – makes you wonder whether it is the same participants buying and selling, or what the motivations of the market are at the time:

From a high of $1.36 intraday to 93 cents a share at the close is a 32% drop. Wonder who those people were that bought at $1.36, and what they are thinking now.

The debentures and notes were relatively stable – a trade went off at 110 cents on the notes (closing with a bid-ask of 95-100), and the debentures have creeped up to 74 cents, but nothing near the volatility seen in the equity.

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I bought 1000 shares at $1.05 per share in my Tax Free Savings Account. Book Value is $1.29 / share. I’ll hold it and sell it at $6.05 and make 5k tax free. Just a few years ago this was a $12.00 stock.