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Uranium: Price is booming

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Yes. A HUGE drop in UUU.

All I can say is: I'm glad I own calls, rather than the stock itself.

I still like the look of Uranium, but an individual co. sometimes gets hammered for reasons like this

 

 

 

That is a big hit. What actually happened here?

Don't see this a buying opp right now then Dr. Bubb?

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Below is from Peter Schiff/Euro Pacific newsletter - The Global Investor 13/3/08.

 

It appears he is now recommending Uranium One (UUU.TO) to his clients. :rolleyes:

 

Canadian Mining Group

 

Uranium produced electricity has been a profitable venture for decades, but has been politically out of favor. Today there are 439 producing reactors in the world with plans for 350 more. The demand for more electricity has been rising and the demand for uranium will be rising right along with it. Enough people move from rural to urban China that they build a city the size of Phoenix (over 1million) every month. The demand on electricity this signifies is staggering. Market demands will push aside politically-correct ideas and will take electricity from what ever source it can.

 

Our first company selection comes from the Uranium industry.

 

The company is a large mining group, based in Canada, with world-wide operations. Two of their properties have caused investors pain. Their stock price is off about 70% from its April 2007 highs. One of the reasons for this pain has been the potential loss of company-specific uranium supply.

 

One site of potential loss is in South Africa. In South Africa, the government mismanaged the electrical infrastructure to the point where electricity has been rationed to miners. This in turn has caused supply to drop and prices to rise. The company reported at an investment conference on Monday, February 25th that they have installed diesel generators to supply their mines with all the electricity they need. Problem solved.

 

The second potential loss dealt with acquiring a raw material necessary to process their uranium in a 3rd world location. At the same conference they announced a supply agreement with a nearby country and that they had entered into an agreement with the host country to process the needed material by 2010. Problem solved here also.

 

Another source of pain has been the falling price of spot uranium. It is off almost 50% from its June 2007 highs. The long-term price of uranium, the price at which most contracts are written, has not dropped, but has been relatively unchanged for the last year. The spot price is heavily reported in the news and influences investor sentiment. The seldom-reported long term price is where the miners make their money and has not dropped in years. Production, not Price, is the key.

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Below is from Peter Schiff/Euro Pacific newsletter - The Global Investor 13/3/08.

 

It appears he is now recommending Uranium One (UUU.TO) to his clients. :D

This is interesting. UUU has been on my watchlist . I'm a complete novice here so let me throw this out...... and see what people think.

It is definately trending , but I think the Directional Movement Index is giving a sell signal.

I'd welcome someone to challenge me on this.

 

At the start of July 2007[$31.50], these indices crossed over [ from buy to sell] and it's been falling since.

 

Until such time as the DMI+ rises above DMI- ; my inclination is to sit and wait.......

 

comments welcome - I'd prefer to make my mistakes here with you folks: It's a more cost effective way to learn :rolleyes:

MunsterK

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THE YAWNING GAP

 

It never dawned on us that the

Mass Fear in the stock market could drive uranium

stocks this low for the biggest disconnect, the widest

"Disparity," we have ever witnessed. The current

yawning difference between commodities and their

stocks, especially uranium, is unprecedented, a brandnew

trick by the market we have never before seen.

Nonetheless, the lower uranium stocks go, and with so

much cash floating around the world, when the inevitable

upturn occurs it could be explosively higher. Especially

since the Fed has slashed interest rates, run the printingpress

money machines out of control and, at some point,

the Mass Psychology should snap to the upside.

. . .

Looking back, we are dismayed that we are left with

bullish long-term charts for gold and uranium, even while

gold and uranium stocks are in Downtrends, and we must

therefore assume that there will be lower stock prices

ahead until those Downtrendlines are actually penetrated.

The big question remains, how low can uraniums go? It is

not realistic to expect them to go to zero, which must

mean that they are nearing a Bottom Formation and

another great buying opportunity.

 

-Jim Dines

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Back to the Future... Barbera is now a U Bull

 

Revisiting Some Radioactive Ideas

What's next for U308?

by Frank Barbera

 

It was late August of last year when I sat down to update readers on the outlook for Uranium stocks. At the time, the sector had been going through its first major correction following several years of unbridled advance. Several months earlier in my newsletter update on June 21st, 2007 we became concerned that the Uranium sector was headed for a serious decline. In that update, we stated...

 

0408.h6.jpg

As we can seen in the chart above, Wave C down was almost exactly the SAME PERCENTAGE decline as Wave A with Wave A totaling (4/9/07 peak at 1389.58 less the A Wave low on 8/16/07 at 684.74 = 50.72%) with Wave C totaling (1116.04 Wave B peak on 11/2/07 less 556.41 on March 31st = 50.14%). What’s more, the declining waves were also very similar in terms of overall elapsed time with Wave A taking up 90 trading days on the downside, and Wave C unfolding over 101 trading days into the March low. Within the overall A-B-C structure, Wave B retraced exactly .66% of the prior A Wave decline. If we plot the Primary Wave II correction on the same longer range graph, we find that prices retraced about 1/3 of the prior entire bull market run (does that sound strange to anyone?). If so, it should not as this is simply what bull markets periodically do, and constitutes nothing but a ‘normal’ correction even though the absolute price decline from high to low so far has been (4/09/07 1389.58 less 556.41 3/31/08) a stunning 60%.

 

/see: http://www.financialsense.com/Market/wrapup.htm

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Back to the Future... Barbera is now a U Bull

 

Revisiting Some Radioactive Ideas

What's next for U308?

by Frank Barbera

 

It was late August of last year when I sat down to update readers on the outlook for Uranium stocks. At the time, the sector had been going through its first major correction following several years of unbridled advance. Several months earlier in my newsletter update on June 21st, 2007 we became concerned that the Uranium sector was headed for a serious decline. In that update, we stated...

 

0408.h6.jpg

As we can seen in the chart above, Wave C down was almost exactly the SAME PERCENTAGE decline as Wave A with Wave A totaling (4/9/07 peak at 1389.58 less the A Wave low on 8/16/07 at 684.74 = 50.72%) with Wave C totaling (1116.04 Wave B peak on 11/2/07 less 556.41 on March 31st = 50.14%). What’s more, the declining waves were also very similar in terms of overall elapsed time with Wave A taking up 90 trading days on the downside, and Wave C unfolding over 101 trading days into the March low. Within the overall A-B-C structure, Wave B retraced exactly .66% of the prior A Wave decline. If we plot the Primary Wave II correction on the same longer range graph, we find that prices retraced about 1/3 of the prior entire bull market run (does that sound strange to anyone?). If so, it should not as this is simply what bull markets periodically do, and constitutes nothing but a ‘normal’ correction even though the absolute price decline from high to low so far has been (4/09/07 1389.58 less 556.41 3/31/08) a stunning 60%.

 

/see: http://www.financialsense.com/Market/wrapup.htm

 

Good Lord, I dont think Ive ever seen anything quite like the pounding uranium stocks are taking in recent weeks. The jnrs are being hammered again today, and the producers/adv explorers getting it too. A lot of jan/feb 08 supports being taken out as well. The bloodbath in prec metals jnrs pales in comparison, really does.

 

I bailed (a bit) earlier this year, but this still hurts. Im gonna pull the trigger here and buy some, I like the contrarian angle, but this beating is unlike anything Ive seen. Any wiser heads have a view???

 

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We are in the post capitulation despair phase

 

http://www.moneyweek.com/file/45859/uraniu...-companies.html

 

So is this not the time to start looking for bargains or real long term plays?

 

Keeping an eye on Thorium power, only 8 employees but a uranium play that may

have gone past the despair point, but long term story to be unfolded if you can wait i guess

 

Riggers

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So is this not the time to start looking for bargains or real long term plays?

 

Keeping an eye on Thorium power, only 8 employees but a uranium play that may

have gone past the despair point, but long term story to be unfolded if you can wait i guess

 

Riggers

Theoretically and normally yes. But the uranium pack have acted strange since begin of April. It’s not difficult to see another 50% loped off some of these, as they go to down to the 10-25c range en mass

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Is Cameco about to go acquisition hunting?

 

.."with the decline in the uranium spot price since June of 2007, the cost of potential acquisitions are coming into a much more reasonable range," Jerry Grandey, Cameco's president and chief executive officer, told shareholders during the company's annual meeting.

 

"Cameco is well-positioned to take advantage of emerging opportunities that will expand and diversify our business. When the right opportunities appear, your company will be actively building on its impressive asset base."

 

 

http://tdw.globeinvestor.com/servlet/Artic...ws?back_url=yes

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We are in the post capitulation despair phase

 

http://www.moneyweek.com/file/45859/uraniu...-companies.html

 

 

Woah - just seen this: http://www.pr-usa.net/index.php?option=com...28&Itemid=9

 

Uranium Participation Corp closes Public Offering.

 

http://bigcharts.marketwatch.com/quickchar...p?symb=ca:TSE:U

 

Not sure what this actually means. Does it mean we can't invest any more? I had my eye on this....

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I think it was just a cash raising exercise like a rights issue but offering new shares to the public rather than just the existing shareholders.

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Any good ETF's in the Uranium space or are individual stocks the way forward?

 

 

Don't think there's an ETF as such, although if you're after exposure to the spot price you can buy Uranium Participation Corporation - it buys uranium directly and stores it. If you want exposure to a spread of U stocks, Geiger Counter Ltd (GCL) is worth a look. Down from its highs last year but it's started to creep north again.

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Any good ETF's in the Uranium space or are individual stocks the way forward?

 

Try,

 

Market Vectors Nuclear Energy ETF (AMEX: NLR) from Van Eck Global

 

Global Uranium Fund, Inc. (T.GUR), managed by UBS

 

[As is usually the case, these probably only avail via NAmer dealers/exchanges]

 

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Anyone follow this website: http://www.uranium-stocks.net/ ?

 

Bear move - while Oil goes on rising

uranium-spot-price-13-may-2008.JPG

 

I have seen it before, but for charts, head first to:

1/

U / New Uranium : http://www.advfn.com/cmn/fbb/thread.php3?id=6450128

2/

U / Athabascan .. : http://www.advfn.com/cmn/fbb/thread.php3?id=11066645

3/

U / Tiddlers ....... : http://www.advfn.com/cmn/fbb/thread.php3?id=16828750 (no charts yet?)

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Following on the near bombed out theme and reasons for optimism, article published in Mineweb.

 

"It may be difficult to believe, but there are a number of emerging uranium producers with stories that are likely to bring rewards to investors. Until then, the good news for investors is that the Bank Credit Analyst recently asked whether (general) commodity mania had entered the dangerous terminal phase, and, pointing to five of its favorite signposts, found that none were yet worrisome. It added, however, that "the ingredients are in place for a full fledged commodity mania throughout the remainder of this decade".

 

http://www.mineweb.com/mineweb/view/minewe...8&sn=Detail

 

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I think I read somewhere on this website that valuing Uranium juniors is a little bit more tricky than gold miners.

 

Though am looking to dabble in the sector through a fund and some shares.

 

So does anyone have any pointers for valuation metrics/directions to a suitable website/advive?

 

 

Thanks

 

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