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drbubb

Uranium: Price is booming

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I have one inside source on this, and it seems to have been received well by potential placees. There is a very bullish forecast on the uranium supply/demand curve over the next decade.

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Haven't had a chance to read that yet, Silver, but will do.

 

Meanwhile here is an excellent interview with Jim Dines which we would all do well to listen to.

 

http://www.streetiq.com/dir/MVTVBOB.shtml

 

 

Thanks for that, he puts a good case for Uranium. Seems like it would be worth singing up and buying the 10 stocks. What put me off before was an interview I heard by Paul van Eden, he is not bullish on the sector and reckons that as U goes up in price it can be enriched in such a way as to make the U go much longer pound for pound. However if oil goes to $200 then people will panic buy these stocks

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I see there were some rises today on some other Uranium stocks after Cameco's Cigar Lake mines partially flooded.

 

Paladin + 6.8%

Mawson + 3%

Uramin + 1.1%

 

The Dines pod-cast was an enjoyable 45 mins, and mentioned Mega Uranium.

 

I came across the following from Resource Capital Research - various detailed reports mostly free.

http://www.rcresearch.com.au/documents

 

I probably have this wrong - UrAsia Energy (Kazakhstan) seems to have a high market cap to uranium ratio, whereas Mega Uranium, Uramin, Uranium Power & Mawson for example have much smaller ratios, esp Mawson and Uramin (although this is a mix of early to later stage developers). I'v found that Mawson and Paladin can be traded in Frankfurt and Uramin on Aim.

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Have a look at CA:U .

 

I understand you get a fairly good exposure to the Uranium price with this. Up over 12% yesterday. Haven't looked today.

 

I think Bubb likes CA: UPC which was also up yesterday.

 

Mawson might be down as it is a gold producer as well and might have suffered because of yesterday's movement in the gold price.

 

I hold a great deal of MAW, bought at C$ .94 .

 

The Swedish govt. has passed some very favourable legislation as far as uranium exploration and nuclear power goes. I think MAW is a roaring buy at these levels. It could go to 1.20 very quickly.

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Yes, looking at the charts, (http://www.321energy.com/editorials/hoye/hoye102206.html) most post a similar pattern. Highs in May, 12 week highs now, look like they're breaking to test May highs.

 

Just Mawson and Dejour seem to be lacking. Dejour's website is crap, which might have something to do with it.

 

I've met John Booth briefly - from Laramide - who seemed a nice, utterly courteous and capable individual. I think Bubb knows him very well.

 

U is the ETF

 

Cameco's flooding problems has caused their price to fall.

 

Mega and Frontier and International Uranium all look good.

 

I am going to buy some of these, probably three. I just can't yet decide which. Probably U, LAR and maybe IUC.

 

Also Thor THR are getting in on the Uranium game.

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Thanks F for more info and comments on cos - I wll go back andlook again.

 

I'm relatively inexperienced in stock trading and have been using iweb (UK) for occasional deals of 1-2k.

I bought some ETF a while back as a basic and also Uramin - they are both easily available to me on iweb.

I would like to invest in 2-3 the others but iweb will take time to make MAW and Paladin in Frankfurt available.

 

With Uranium Poewr Corporation - they have sheep mountain - but then their website talks generally about Mongolia, but I didn't find anything specific, which was a bit confusing.

 

So I need to find a way of dealing easily and cheaply with smaller investments, preferably online rather than by phone, in various markets, esp. Toronto. Is that too much to hope for? As a newbie, what share-dealing service would anyone suggest might tackle this and some of the gold cos mentioned? I feel a berk to have to ask (expect the info is tucked away somehwere on the GEI site anyway), but there it is.

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I use TD Waterhouse.co.uk and you can buy Canadian-listed stocks with them. Not too dearly.

 

LAramide just announced some good results yesterday hence their shre price going up.

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CA:U, Uranium ETF, up another 5% yesterday. Most miners up 5%.

 

Is Uranium leading the next energy move?

 

Bubb, there are several of us interested in buying Uranium. Would you be touching at these levels? Or would you 'wait for a pullback'.big3in7.gif]u[/url]

 

big4cl0.gif]lam[/url]

big5vh6.gif]iuc[/url]

big6yv0.gif]upc[/url]

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http://www.rcresearch.com.au/documents-info

 

The last free abridged report fromr Resource Capital Research was excellent and I've just been alerted to this companies new report.

 

'Abridged Report: (Free of charge) A critical overview of the uranium sector from a global perspective, providing useful investment analysis and valuations. This report reviews activities and assesses projects for a range of uranium exploration and development companies predominantly listed in Australia, Canada and the USA.'

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How I play uranium...

 

This may be particular to Australia only, not sure if there are companies like this overseas.

 

Basically I'm not a great believer in the uranium story, but i do want to retain exposure to it. So my method is to buy companies that spin off uranium prospects in to other ocmpanies they are listing. If I'm lucky I also get stock in the spin off which i then sell into the stag (the jump on listing date). Meanwhile I retain my investment in the original company which is looking for other stuff (base metals, gold etc).

 

The reason i do this is that for some bizarre reason, it takes a while for the market to cotton on to the fact that the original company now has a significant asset (the shares in the spinoff) that makes it extremely undervalued (specially after the uranium spinoff shareprice goes nuts).

 

As an old example, i did this with a company called Jindalee Resources which spun off a uranium IPO called Energy Metals. They retained around 10 mill shares in EME which was valued at around 4 mill pre list....with a market cap of only around 8-10 mill for JRL this made it etremely undervalued given its cash assets and exploration projects. EME then went on to stag at about 4 times the SP, JRL didnt really respond, so i bought up more...eventually the market took notice of JRL and it went ballistic. Mind you i stupidly sold the EME shares at 98c on day 1 of listing...think they are around 3-4 bucks now.

 

I am currently doing the same with a company called Washington Resources which i bought recently in the low 20c as well as options at 5c last couple days. It has spun off a uranium company called Northern uranium at 20c, with the SP now at 64c 9went for a run yesterday), 10 mill shares in it values it at $6.5M, WRL also have 3 mill cash in the bank and some very good nickel and copper exploration projects. With a market cap around $12-14 million, it looks quite cheap. Market is starting to recognise it, and WRL now moved up to around 28-29c...if NTU keep going then I get the uranium upside plus explosure to some good quality exploration projects.

 

Not sure if this is a trend overseas, but if it is i think its definitely worth investigating such companies while the uranium boom is in full swing. Take a look at their holding in the uranium companies, the qualiy of their own exploration assets and cash in the bank, then take a look at their market cap to see if the market has recognised the potential yet. The downside is limited while the upside is twofold, uranium boom and exploration.

 

Cheers

 

BuffetJr

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Guest Guest

You all have to remember that there are both large secondary supplies of uranium held by the Russians and the Americans as well as significant stockpiles of so-called "waste" from which MOX can be obained. Secondary supplies are classified information. And this is the most regulated energy market that has ever existed.

 

You are all engaging in a speculative binge. Not only that, but you are speculating on a fuel that takes even less time to bring to "market" than the new power plants that will burn the fuel in their cores. Once secondary supplies are actually used and MOX is fabricated from waste the bottleneck in the nuclear fuel cycle will be at the enrichment stage. But, as they say, make hay while the sun shines!

 

http://uic.greenbanana.com.au/search.php?q...ox&search=1

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I agree Guest, which is why i am unwilling to invest in a 'pure' uranium play...and by that i mean, stocks that are just there for the uranium boom and which will disappear or change their focus once that ends.

 

Uranium companies that have real assets with potential are another story, particularly if you can find an undervalued one with a high grade resource (high grade for me would be 0.2% or higher, not these cr@p deposits of 0.1% or less).

 

Obviously this has been to my detriment given how some of the stocks have jumped so high.

 

But that wont always be the case.

 

BuffetJr

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Actually, you have to be very careful about mining low U3O8 concentrations. Some studies have been undertaken that indicate the carbon cost of exctracting relatively low grades greatly exceeds any potential benefits. For example, we now are utilizing an average concentration of 1% ore. It would require around 10x the energy to mine 0.1% ore. This is not even considering energy inputs (and pollution output) across the complete fuel cycle. Some fairly good thermodynamic studies were done by the öko-institute in Germany.

 

Something else that very few people are considering is where all the nuclear engineers are going to come from - not to speak of the other engineers required - for such a massive construction program. I used to work as a nuclear engineer on power plant projects in the late 70's early 80's. We had thousands of people working on individual projects, the majority of whom were engineers. Where are they now? How many nuclear engineers have graduated in the West since 1980? I would claim that there are few if any.

 

I have stayed as far away from this speculative market as possible. At some point, reality will come back into play and these very speculative mining plays will come crashing back to earth. The vast majority of these will never get anywhere. They can whinge all they want about governments withholding secondary supplies but the Russians will eventually come back into the market- most likely at a very inopportune time. The only reason they left back in 2002 or so was that DOE was trying to rip them off. They will come back on their own terms.

 

However, having said all that, there certainly are some powerful interests that would stand to benefit should this nuclear build go forward in spite of the fact that it is neither efficient nor cost effective nor environmentally sustainable. And since they are close to the political powers that be they may well succeed. All it requires is a policy. Unfortunately, even if that were to occur these promoters and their small, low-grade mines will still go nowhere.

 

Unfortunately, there are so many vested interests seeking individual gain from this technology that I doubt any kind of rational policy will be developed in the public interest.

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Thanks for this folks.

 

Until reading the above I was of the mind that Uranium was an almost no-risk, inevitably-going-up sector.

 

I have a number of plays which are going well at the moment. Some have doubled and others are close to doing. I guess the sensible option is to take half off the table, ie your original investment, when it doubles. Thus leaving yourself bullett proof on the downside and exposed to any upside, bubble or genuine.

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