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Yellow Cake plc (YCA.L) An Undervalued Stable Low-Risk Stock

Yellow Cake plc (YCA.L) An Undervalued Stable Low-Risk Stock

A Specialist Company Operating in The Uranium Sector, Created to Purchase And Hold Uranium Oxide

Direct Investment in Uranium

  • An investment in Yellow Cake represents an investment in the physical U3O8 owned by the Company
  • Exposure to the uranium price
  • No direct exposure to risks associated with exploration, development, mining or processing
  • Upside exposure to uranium price not capped by long term uranium sales contracts

Business Summary

Yellow Cake plc is a Jersey-based company that operates in uranium sector.

The Company is focused on purchase and holding of triuranium octoxide (U3O8). It is also focused on the purchase, sale and trading of uranium through the Kazatomprom Contract and through any other long-term contracts entered into by the Company.

It is also involved in other uranium related transactions, including the acquisition of production or synthetic production, via streaming, royalties or similar mechanisms.

Shayne Heffernan Trade Idea

“Our current price target of Yellow Cake plc will come in around GBP 280.50 which will give the stock a price increase of +39.21%.”

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 213.28.

The projected lower bound is: 190.02.

The projected closing price is: 201.65.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 15 white candles and 33 black candles for a net of 18 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 25.6560. This is not an overbought or oversold reading. The last signal was a buy 5 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 37.09. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 41 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -87. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 36 period(s) ago.

Rex Takasugi – TD Profile

YELLOW CAKE PLC closed unchanged at 201.500. Volume was 51% below average (consolidating) and Bollinger Bands were 22% narrower than normal.

Open     High     Low      Close      Volume
199.200  205.000  199.200  201.500    203,779
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bearish
Long Term:         Bullish
Moving Averages: 10-period      50-period        200-period
Close:           203.85         215.29           196.72
Volatility:      24             35               41
Volume:          262,822        524,920          373,392

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

YELLOW CAKE PLC is currently 2.4% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods.

Our volume indicators reflect volume flowing into and out of YCA.L at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on YCA.L and have had this outlook for the last 24 periods.

We invite you to try out any MetaStock product (including Add-Ons) for 30 days. If you are not convinced that it helps you make more accurate, educated trading decisions, just return it to us within the 30 days for a refund of the purchase price. It’s that simple. This policy does not apply to subscriptions.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of the London Stock Market.

Trading and investing carries a HIGH LEVEL OF RISK, you could lose some or all of your investment. Trading commodities or any other financial instrument may not be suitable for all traders. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. We accept no liability for any losses or damages you may incur—this means that you alone are responsible for your actions in any trading or investing activities.

Sources:
Yellow Cake plc Company Website
Thomson Reuters Metastock and Eikon financial tools

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