It was not a particularly great day for investor in enCore Energy Corp (OTCMKTS:ENCUF) and after the decline in the stock by as much as 5% yesterday, investor would be hoping for a quick recovery.
Trading Data
On Monday, ENCUF stock fell 5.63% to $1.32 with more than 313k shares, compared to its average volume of 308K shares. The stock has moved within a range of $0.5700 – 1.8000 after opening trade at $1.37.
Secures Second Uranium Purchase Agreement
However, in this situation, it is important for investors to take a look at the announcement from the company industry in order to get a better idea about the situation. The company, along with Azarga Uranium Corp, announced yesterday that enCore Energy Corp managed to bag a second uranium purchase agreement from a United States utility company which is a part of the Fortune 150.
In this context, it is important for investors to keep in mind that enCore Energy Corp is one of the leaders in the in situ recovery Uranium development space in the United States. The award of a second contract is an indication of the fact that the company may be moving in the right direction. However, the news did not lead to any optimism about the enCore Energy Corp stock among investors and stock suffered from a selloff. That being said, it might be a good idea for investors to add the stock to their watch lists for the week.
Key Quote
Paul Goranson, enCore Chief Executive Officer said, “We truly appreciate the confidence in enCore Energy Corp. shown with the execution of our second uranium sales agreement. At enCore, we are building a production pipeline strategy focused on US based ISR uranium production. We have been expanding our growth strategy organically with our near-term production assets in South Texas and through transactions with the assets that Azarga Uranium Corp. will bring to the merged company. This agreement affirms that growth strategy, and it provides a long-term relationship with a large domestic nuclear power utility as it advances sustainable clean energy generation.”
Technical Data
ENCUF stock is below the 20-Day and 50-Day Moving averages of $1.43 and $1.48 respectively. However, the stock is trading above the 200-Day moving average of $1.20. The stock is down 18% in the past month.