Most Shorted Stock On Ftse

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Most Shorted Stock On Ftse

Yellow Cake (Yca): The Most Shorted Stock On Ftse

Recent data shows that the Yellow Cake (YCA) is the most shorted stock on the FTSE. Around 6.92% of the YCA stocks are being shorted in hopes that the share price will decline.

But what's the nature of the business of the Yellow Cake (YCA)? They buy uranium and then hold it in hopes that its price will increase in the long term.

Yca'S Yearly Total Cost Is $16 Million

Data from September 2024 shows that Yellow Cake has around 10K tonnes of uranium. A large portion of this is acquired through an agreement with Kazakhstans national atomic company.

So, even the daily fluctuations in the price of uranium end up impacting the market cap of Yellow Cake. A quick look at the share price of Yellow Cake in the last 5 years shows this correlation with the uranium price.

As of now, the total cost to run the company is $16 million, and most of it is used for storage costs. The data from 2024 also shows that they have $26 million worth of cash in the bank.

So, the math tells us that the company will soon have to sell a portion of its inventory to keep the company afloat. But what's interesting is that they have $1.7 billion worth of uranium. So, selling some of that radioactive metal shouldn't be an issue at all.

The business model of Yellow Cake is also very simple. They are not involved with mining uranium and only deal with the storage of uranium.

The bottom line is that the fate of the Yellow Cake is tied to the price of uranium. So, if the price of uranium rises in the coming years, it will help Yellow Cake immensely.

On the other hand, a decline in the uranium price will also lead to a decline in the share price of Yellow Cake (YCA).

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