Reading the forums online there has been a lot of chatter about the stock and it's potential upside for a number of reasons. These reasons include:
- Small market cap of only $8 million undiluted (Northern Uranium's is approximately $40 million)
- Lack of shares on issue (approximately 55 million) which will make it hard to stifle the share price
- Rock chip samples recently taken with results due in the next week. Anticipation of these results will help the share price.
- 'Nearology' to Northern Uranium. Traders and investors will be wanting to ride the next share price burst after the performance of NTU shares.
As an aside and interesting to note, Areva has taken it's chance to exit the share registry of Northern Uranium. Areva filed a 'ceasing to be substantial shareholder' notice to the ASX today.