Uranium tulip bulbs
This topic might be considered outside my area of expertise. Not gardening, but uranium. I’m not even sure if it’s on the table of periodic elements. Grade 12 science was a long time ago.
But what I do understand about uranium is this: according to a well-placed source – and I have no reason to doubt the tidbit after watching him successfully traverse the rapids of the capital markets for a very long time – there are over 600 non-producing uranium companies listed on the TSX, AIM and Australian Stock Exchange. Harkens back to the Dutch Tulip Bulb mania.
As in over 600 firms looking to hit the jackpot. By his math, if each one only burns $3 million a year trying to make something of themselves, the sector as a whole needs to raise $1.8 billion next year just to stay afloat. Forget about serious finding costs. With the object of their desire commanding less-than-rosy prices of late, how many buysiders are going to want to pony up 600 x $3 million next year? And the year after? And after that?
Can the icy hand of death – or the merger yenta – be far behind?