TooNiceStocks Do a Second Promotional Take on Uranium Energy Group (NYSEMKT:UEC)

When was the last time you came across a NYSE-listed stock that has fallen under promotional attack? While this question might catch a lot of you by surprise, such thing really exists and takes place every now and then, and the stock of Uranium Energy Group (NYSEMKT:UEC) is a case in point. The stock is being pumped by TooNiceStocks powered by a third party called Fin Media.

If we have to be more precise, we cannot (and should not) forget the fact that this is by far not the first time the NYSE-listed UEC stock has been pumped. Ironically enough, UEC shares were promoted in early-April by that same promoter. Back then, TooNiceStocks got a hefty $60,000 by a third party InterVCap LLC for a one week of advertising. This time, the compensation is the same, albeit stretched over four weeks rather than one.

So, what is the new campaign aimed at and does it have what it takes to send the stock into a trading frenzy?

Before we go into further detail, let us remind you what happened with the stock in April. As soon as the old campaign started on April 2, UEC quickly shifted a first-day volume in excess of 1 million, only to close trade at $1.97, down 8% from its April 1 close of $2.15 per share. Over the course of the next few days, UEC shares were traded from $1.93 and $2.00 before wrapping up the 7-day campaign at $1.98, thus leaving the overal effect of the promotion at a mere 0.5%.

That is why, UEC‘s run last Friday failed to take us by surprise. The stock opened at $2.11, peaked at $2.13, bottomed at $2.01 and closed trade at $2.06, down 2.8% from its pre-promo close on Thursday. Even though the promotion will last for 30 days, the stock of Uranium Energy Group will have to go to great lengths to recover from its temporary pullback. With a market cap of $185 million, it will take much more than a few large-scale transactions to shift the stock’s price up or down. An average volume of some 700 thousand and a total O/S exceeding 85 million complete the picture.

From a fundamental point of view, the company does not appear to be able to manage its expenses. For the last two quarters on record, the latter have exceeded its revenues by a landslide. This calls into question the managers’ hefty remuneration packages and will, sooner rather than later, require a tighter budget discipline to ensure long-term corporate operations. Until this happens, however, Uranium Energy Corp. will be unlikely to achieve any breakthrough on the charts.