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This was tipped in last week's Moneyweek.

 

http://www.uranium1.com/

 

Uranium exploration and development in Australia, South Africa and Canada.

 

What do you think of this chart, Dr Bubb? I think it looks set to rise. Nice double/triple bottom just below $8.

 

big7yt4.gif]SXR[/url]

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SXR has risen to 16, but just recently fell back on the following to around 13 -

 

TORONTO, Jan 8 (Reuters) - Rio Tinto (RIO.L: Quote, Profile , Research) (RIO.AX: Quote, Profile , Research) has decided not to sell its Sweetwater uranium mill and other U.S. assets to sxr Uranium One Inc. (SXR.TO: Quote, Profile , Research), citing significant and unexpected changes in the global market for uranium, sxr Uranium One said on Monday.

http://yahoo.reuters.com/news/articlehybri...News&rpc=44

 

Is now a producer

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I think hard on uranium. The price already picked up since start of uranium bull market but in second hand world will need more nuclear plants due to lack of energy.

What to think? Buy or not to buy?

Or maybe wait for general stock crash and buy later?

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The actual Uranium price is a very small part of the total nuclear power generation costs.

Even at $100 its still a small part of the total cost. They will still buy to ensure supply many years in advance.

A lot depends on sentiment and new plant orders will only help this.

I bought into the Urasia fund in Sept but switched to UraMin in November.

Part of the reason was that Urasia is so thinly traded that deals get rejected.

It may be riskier having being in just one stock but at least UMN is heavily traded for a quicker exit.

Im playing it fairly safe with these stocks because it could pop any moment.

As soon as the UxC spot price declines they will nosedive.

I cannot see those many years away from production surviving.

So far I have been taking profits when they rise 20% and keeping the intital stake invested.

I'd normally just have a stoploss but movement on these stocks happens quickly, drilling reports etc and they can crash quickly.....

Maybe OK for a daytrader but ive got a nuclear job to go to :ph34r:

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Assurbanipal - In addition to what i wrote above i dont think you can delay a decision on this one. If your going to buy id buy now or the whole show could be over by the time the next general stock correction arrives.

Also these stocks are very tightly linked to the uranium price and i have not seen any link with the wider economy.

With other metals increased economic activity leads to higher prices eg Cu, Zn, Pt etc

But with U it doesnt because it takes 5-10 years to build a reactor and they are linked to politics.

Also manufacturers buy 'normal' metals for use months in the future with U they stockpile for future use many years into the future.

$50 / $100 / $150 it doesnt matter as long as they have enough of it.

To put it in perspective just work out how much a lost days production is for a single nuclear plant.

The fuel is very cheap compared to the multi billion $ initial investment.

Id be interested to see what some of the chartists think of these stocks.

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I bought into the Urasia fund in Sept but switched to UraMin in November.

Part of the reason was that Urasia is so thinly traded that deals get rejected.

It may be riskier having being in just one stock but at least UMN is heavily traded for a quicker exit.

 

I saw Uramin present yesterday. Very good. I would buy in were it not for the fact that the chart is vertical.

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Seems Nov was a good time to switch.

They release a this drilling report earlier this week which caused the stock to rise. Nice rich seam :rolleyes: .

They can also sell their near term production at high prices unlike the big companies Cameco, BHP etc which have already (sometimes years ago) sold forward production at lower prices.

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Mon / Tuesdays action was cause by drilling results.

Wednesdays action was cause by the following:

"UraMin Inc said 12 of the 14 prospecting licenses applied for in the Ryst Kuil Channel in South Africa have been awarded with an exploration target of 60 million lbs U3O8.

 

Its tempting to take some more profits and buy BP...

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Just remembered the fund was something else - Geiger Counter Limited on the channel isles.

Urasia is UUU, rather confusingly Uranium Resources is URA !!

UUU is thinly traded and the spread is big for URA.

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