How much uraniums sits in stockpiles?, page-9

chubito -sorry i dont see your response to the points regarding p/e?

as for thinking pre fuk vs post fuk sp differences indicate market pricing, and thats its a better way to assess fuutre price expectations - i cant agree with you.

a) accounting writedowns have very little relationship with stock prices unless they are a shock at the time they occur- and the market gets over that very quickly once it has adjusted for it. and it definitely does not correlate 1:1 with stock price in any event

b) comparing pre-fukishima uranium stock prices to now is like comparing pre-gfc industrial stock prices to 2-3 years ago and inferring half share price means half sales volume. it just isnt supported by the data

c) unless you are absolutely certain the capital base now is the same as it was pre-fuk, this is completely misleading

the p/e ratio has nothing to do with non cash write downs except indirectly in the event a company raises additional capital to plug the theoretical balance sheet hole and so dilutes EPS

accounting is a completely misleading practice in relation to stocks except insofar as roe gives some insight into capital mgt expertise - esp commodites where loss makers frequently rise or fall on spot price moves rgeardless of inherent profitability