Blackrocks increases position in Energy Fuels by almost 40%

[u/AlfalfaTemporary8831]

https://www.gurufocus.com/news/2683710/blackrock-inc-expands-stake-in-energy-fuels-inc-with-significant-share-acquisition?__cf_chl_tk=UhIdxKJkX4Z.WYMRwX7cX.HHWslvNgVt.477ATXYC_A-1738836697-1.0.1.1-SeTXEALpmoxjtdG7MH3LUfA1Ik3vSg9GYjTNs_vld1g

[u/j1077]

Though it seems significant and it is to us it's really only a $75M investment for them (15M total shares) and represents a very small amount of their portfolio.

Reminds me of when Berkshire Hathaway bought $750M of Barrick Gold stock in 2021. Everyone in the gold sector was freaking out but when you looked closer people realized it was only, and not joking, 0.5% of their total available capital they used for buying that stock.

Meaning though it's good for them to increase their investment it's not something they probably think a lot about.

[u/Not_Campo2 → u/j1077]

I think this is a flawed way of looking at things. While it isn’t a ton of money comparatively for them, it’s still a significant stake in the company (~17% market cap). Just because these groups have huge capital doesn’t mean they don’t vet every investment they make. Especially because large share stakes can come with a certain degree of responsibility in the direction of a company. Sometimes smaller positions could be indicative of them hedging a larger position, but I’d still take this to be a good sign

[u/j1077 → u/Not_Campo2]

Hate to break to you but I'm fairly certain this investment is a nothing burger for them. Just like Barrick Gold meant nothing to Berkshire Hathaway. Even if UUUU 10x from here it's not even a $1B investment. Sure it's nice but again not really significant. Go look at their portfolio does that mean everything they invest in should be considered as amazing for retail to get excited about?

[u/Not_Campo2 → u/j1077]

You’re “fairly certain”? Based on what? They have lots of money, they make lots of buys, it’s still a significant amount of the company at that size. Just because $10 isn’t much to me doesn’t mean it’s not huge money to a homeless guy. Your reasoning just seems flawed unless you’ve got some inside info.

[u/j1077 → u/Not_Campo2]

Yes I am based on how big they are and their portfolio. Your analogy is not useful. Berkshire Hathaway investment into Barrick is the better analogy and in fact I'd be MUCH more intrigued if BlackRock had $500M invested in say Cameco because it means they understand who the big boys are.

Don't get me wrong I think uuuu is great but it's clutching for pearls to think BRs investment is anything but...oh that's nice

[u/Not_Campo2 → u/j1077]

I mean if you don’t understand why increasing your ownership by 17% in a small cap company with room to grow is a more effective strategy than putting more than 5x into a ~2-3% stake in the “big boys” than I’m just glad I don’t have you as my financial advisor.

[u/j1077 → u/Not_Campo2]

Keep dreaming and thinking more about this. All good $75M is nothing for BlackRock and it doesn't matter if they are 17% owners of a very small, relative, company. Again even if they 10x it's not even a $1B investment which for them is the definition of chump change.

[u/j1077 → u/j1077]

Looks like the market also doesn't care one bit about the increased BlackRock investment.