Wednesday, June 10, 2009 at 06:57PM
Chart courtesy of Stockcharts
Uranium One Incorporated (UUU) is trying to come out from under a cloud that reads like a script for a day time TV soap opera with allegations of behind the scenes corruption and a dynastic approach to leadership.
The arrest of the former head of the nuclear state company who is being charged for selling vast amounts of the states assets for a nominal sum and pocketing the proceeds has led to various investigations being instigated. The question is did Uranium One buy some of these properties illegally or not, which brings us to the debate on Stars and Dogs featured on the business television programme BNN today.
Angela Wiebeck, executive director - Head of KeyClient Group, UBS was asked to judge the situation as to whether she would be a bull or a bear on UUU. Now we are in Kazakhstan where the 24 year old grandson of the President is head of one of the countries biggest banks and his three daughters are in charge of the media, energy and construction sectors.
Well the political situation was just too much for Angela Wiebeck who came out as bearish on this one.
Just click here to catch the nine minute clip.
Also take into account that this country has been under Russian rule for three generations and now has to adjust to a western style of capitalism.
UUU has started to recover as we can see from the above chart but the political uncertainty remains so expect a few more gyrations in the stock price before this one settles down.
We did mention when this story broke that it could be worth a punt on 27th May 2009 when we wrote “If all is well this could be a wonderful buying opportunity for those who are quick and have all the facts before them” if you took such a punt please write and let us why you thought UUU was a reasonable investment at the time and if you have an exit strategy just how you intend to play this one.
Have a good one.
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