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Uranium: Price is booming

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Nice 12% gain on the day in Canada after Uramin announced it was in talks to sell the company.

China has earlier announced an interest and Areva has a 6% holding so hoping for a bidding war.

Just had two uraniums hit automatic buys today…

 

UPC.v for C$0.86

PNP.t for C$10.75

 

I’d set up these “stink bids” about a month ago. I almost bought UPC for C$1.15-ish a few weeks ago

:( Here’s hopin Im not going to cut myself too badly on the ol falling knife.

 

Anyone else dabbling?

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Just had two uraniums hit automatic buys today…

 

UPC.v for C$0.86

PNP.t for C$10.75

 

I’d set up these “stink bids” about a month ago. I almost bought UPC for C$1.15-ish a few weeks ago

:huh: Here’s hopin Im not going to cut myself too badly on the ol falling knife.

 

Anyone else dabbling?

 

And just bought load of JNN.v. My U exposure massive again, 20%+ yikes!!

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JUST GOES TO SHOW...

 

You have to be willing to sell when the hype levels are high - like near the time of the Dines interview.

 

Uranium continued to rise, but starting near that time, the shares started to drift. They could continue

to drift for many weeks, and I will be in no rush to buy aggressively. Having said that, I am nibbling

at a few stocks

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JUST GOES TO SHOW...

 

You have to be willing to sell when the hype levels are high - like near the time of the Dines interview.

 

Uranium continued to rise, but starting near that time, the shares started to drift. They could continue

to drift for many weeks, and I will be in no rush to buy aggressively. Having said that, I am nibbling

at a few stocks

 

Frizzers (fine) interview and some other “alternative” reporting, a few newsletters, and the odd mention on the back pages in mainstream media hardly constitutes hype? If you want to see top-of-cycle hype look no further than todays irish times property section… say no more :huh:

 

My experience with U stocks, and Ive been involved only about 18mths now, is that buyers can return with a venegence after a period of consoldiation. So far, this is only my 2nd experience of an across the board consolidation in this sector. Mega Uranium (MGA.t) is a good example. Call up a 2-yr chart of the price action. It looks to be doing the exact same thing it did April/May of last year (sorry don’t know how to paste charts!).

 

Having said that, I agree that more downside is possible/likely here. No rush to buy aggressively here.

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Both my main U stocks have now been takenout. Urasia and now most likely Uramin.

My firsthand experience is that utilities and even fuel vendors are still interested in buying but the companies must be relatively small (not Cameco or BHP for instance) and have proven reserves. My strategy of concentrating on small near term producers has worked thus far and i will look to reinvest after takings some profits to buy a quality home cinema system :huh:

 

BTW - What U stocks are you nibbling at Bubb ?

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Both my main U stocks have now been takenout. Urasia and now most likely Uramin.

My firsthand experience is that utilities and even fuel vendors are still interested in buying but the companies must be relatively small (not Cameco or BHP for instance) and have proven reserves. My strategy of concentrating on small near term producers has worked thus far and i will look to reinvest after takings some profits to buy a quality home cinema system :)

 

BTW - What U stocks are you nibbling at Bubb ?

where now u308 stocks??..

Bernanke 0.5%, following week Dow/Ftse down, u308 shares way down?

 

Im consigning my remaining shares to the "lottery ticket" component of my portfolio. I need to focus on nat gas anyhow (PennWest looks good)

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What U stocks are you nibbling at Bubb ?

 

 

I own: LAM.t, MAW.v, CVV.v, MM.v,

 

But I have stopped buying for the time being. I want to see how gold and other commodities hold

through the next week or two. There could be a drop the Fed cuts rates less than 50 bp.

(Listen to Frank Barbera on FS this week.)

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Up-move starting?/

 

Some of the U-stocks now have good bases in place.

We could be set for a good-sized upmove

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Up-move starting?/

 

Some of the U-stocks now have good bases in place.

We could be set for a good-sized upmove

Agreed. And natgas looks like a good punt too. But how can ANYTHING go up with US sliding into recession, and UK/US housing and stock markets going into bear mode?

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Some of the U-stocks now have good bases in place.

We could be set for a good-sized upmove

 

I agree. U buyers are more active in the fall and the U price has stopped falling.

UK and Finnish announcement on new plants could also help.

 

May take the easy route this time and buy GCL instead of directly in shares.

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Hi All,

 

I completely missed the BIG move, but at least I didn't buy in at the top! Anyway, now seems like a pretty good time to take a position, accepting the possibility of further short term volatility (if gold and oil pull back to $730 / $75 ish then I could imagine uranium re-testing $75-$80. But for now it looks like things are on the up again and I don't want to get left behind. In light of Swervin' Mervyn's latest comments I've decided my £ cash holdings are too high so need to diversify and expand the non-cash portion of my STR fund a bit more.

 

So... I'm looking to put together a mini portfolio of 3 or 4 stocks to hold for the med-long term, nothing ultra speculative, although I'm only looking at circa 2% of my net worth for this so happy with a bit of risk. Currently thinking of a mix of Cameco, Laramide, and Uranium Participation Corp. What do y'all think? I would consider putting a 4th more risky play in there if anyone has any ideas I can research?

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Hi All,

 

I completely missed the BIG move, but at least I didn't buy in at the top! Anyway, now seems like a pretty good time to take a position, accepting the possibility of further short term volatility (if gold and oil pull back to $730 / $75 ish then I could imagine uranium re-testing $75-$80. But for now it looks like things are on the up again and I don't want to get left behind. In light of Swervin' Mervyn's latest comments I've decided my £ cash holdings are too high so need to diversify and expand the non-cash portion of my STR fund a bit more.

 

So... I'm looking to put together a mini portfolio of 3 or 4 stocks to hold for the med-long term, nothing ultra speculative, although I'm only looking at circa 2% of my net worth for this so happy with a bit of risk. Currently thinking of a mix of Cameco, Laramide, and Uranium Participation Corp. What do y'all think? I would consider putting a 4th more risky play in there if anyone has any ideas I can research?

 

I think now could be a great time to get into Urainium too. I have been watching TSX:UUU (Urainium One, Inc) for quite a while now and it seems to have been hit more than the stocks you have mentioned.

 

Might be worth checking it out as one of your four but I need to do much more research about it to be convinced it's worth holding.

 

Do post back here if you go for it with any stocks. I would love to hear more about your reasoning behind those you select.

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My thinking is pretty simplistic on this. I thought a decent mix would be a blue-chip miner, a smallish but fairly well established uranium-specific producer/explorer, and a direct play on the commodity price itself. I do intend to do some more research on UUU and some others, but for me it's just a case of lucky dip with this sort of investment, unless you have the time and inclination to do some serious in-depth research into the industry and individual miners. As I only want to invest a relatively small amount at this stage, I don't! I know this isn't a great approach, but time is the limiting factor.

 

If there are any uranium experts out there who can give a concise guide on how to distinguish a good miner from an overvalued dog then please educate me, but I suspect it's not simple.

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a concise guide on how to distinguish a good miner from an overvalued dog then please educate me, but I suspect it's not simple.

Get a sub to Doug Casey, Jim Dines, Jay Taylor, Paul van eden etc. Not being clever, the analysis is too much and i defer to the experts.. the advice from Casey and Dines alone has paid for their subs many times over.. good luck...

*********************************

Im waiting very very patiently for Credit Crunch 2.0 to expose some buy opps. On my watchlist for (re)entry are UEX, SAN, JNN, CHX. Also looking to add to my 'long-term' pos in the top-tiers, DML, UUU, LAM, PDN etc.

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Everything getting whacked today - LAM down 9%... I'm watching like a hawk but not buying just yet!

yep. sit tight. still not cheap enough. Im trying to use tech analysis to trade these moves. Look at DrBs Golden Inflection Point thread. These uraniums can go much much lower and prob will. If they do, THEN buy. If not, oh well, wait for weakness on next consolidation. I made serious dough with this approach in August, (aggressively) trading LAM and others. I have the following buy orders in place;

 

PDN $5.50

SAN $0.42

UEX $6.15

DML $8.75

PNP $4.00

 

some even look a bit high after todays action. Im expecting the mkts to go lower from here pre Dec 11. my 2 cents!

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Uranium investors need a strong stomach; medicine on the way

Monday, January 21, 2008

By Luke Brocki

 

 

Yellowcake mines coming in Australia, world’s biggest maker of power generation gear may enter uranium market.

 

I’m not here to pretend all is well in the market these days. (Or am I?) Even if I was, this would not be the week to do it. (Or would it?) After all, North American markets suffered triple-digit losses, the TSX was down a record 900 points in 3 days, posting its worst week in seven years and—adding insult to injury—the uranium spot price slipped 50 cents to $89.50 a pound U3O8.

 

But I will say this: if you’re in it to win, tighten the belt and stick around. (How’s that for foreshadowing?) Forget these day-to-day bearish catastrophes in favour of phenomenal strength in the long-term market. Because dammit, things are really rolling on the uranium front.

 

OK, the Resource World uranium stock index dropped nearly 200 points this week, before rebounding 57-points-and-change Friday to close just under 1,200 points. And yes, that’s still low given a brief foray above 1,500 points in December.

 

To boot, industry indicator Ux Consulting dropped its spot price by 50 cents to $89.50 a pound U3O8 earlier this week. And rival indicator Tradetech reported just a single transaction, with material selling at about $90 a pound U3O8. Several sellers continue to seek buyers, but nobody is yet desperate for material. Not yet, that is.

 

This week alone, Australia was looking to fix trade relations with resource-starved India after a rejected uranium trade deal, South Australia was poised to become the home of two new mines, British scientists have forced uranium into a chemical reaction and General Electric (NYSE: GE, Bullboards) expressed interest to hop on the uranium wagon.

 

On Tuesday, Australia’s Rudd government stomped a decision by the previous government by telling India it would not be buying Australian uranium unless it signs the nuclear non-proliferation treaty.

 

The move caused diplomats considerable grief. After all, Australia is sitting on gigantic uranium reserves and India is desperately seeking power for its rapidly expanding economy. Realizing this, Australia elaborated on its decision Thursday: while the government has banned uranium exports to India, it has not decided whether to block India’s uranium purchases from other countries.

 

The latter is possible given Australia’s membership of the 45-nation Nuclear Suppliers Group, which controls global export of nuclear materials. It will be interesting to see whether Australia will support international uranium sales to India, especially if the 1-2-3- agreement—a recently proposed US-Indian agreement to share civilian nuclear technology—gets the green light.

 

Elsewhere Down Under, South Australia, the site of the world's largest reserves of low-cost uranium, could become the home of yet another uranium mine. Alliance Resources (TSX: V.ALL.H, Bullboards) announced a mining trial at a project near Arkaroola, marking the week’s second major mining announcement in the area.

 

On Tuesday, Reuters reported Uranium One (TSX: T.UUU, Bullboards) got construction approval for its Honeymoon mine in South Australia, which is now expected to come online before the end of 2008. Thursday’s announcement could spark the development of Australia's third-largest uranium mine and crown South Australia the uranium capital of the country, with four of the nation’s five operating uranium mines.

 

And Thursday, Bloomberg reported General Electric is now in talks with several uranium companies to develop a nuclear business and gain access to uranium. This could mean the world's biggest maker of equipment used for power generation is looking to expand its nuclear activities.

 

More exciting news came from the lab: scientific journal Nature reported British scientists have forced uranium into a chemical reaction. A pair of University of Edinburgh chemists has tricked uranium into behaving like a lighter and more reactive metal and the discovery is expected to have long-term benefits for nuclear research. Specifically, breaking the incredibly stable uranium-oxygen bonds of uranyl ions could help unlock new strategies for removing uranium from contaminated water.

 

Finally, the kicker: the Australian Uranium Association says global nuclear power capacity grew by 372.1 gigawatts in 2007. That’s thanks to four new nuclear reactors and upgrades to existing facilities.

 

For perspective, that’s six times the increase posted in 2006. And hundreds of reactors are proposed and planned around the world, with 34 new ones already in some stage of construction at the end of last year.

 

So will this news chase the bear away from the spot market? Eventually, yes. Because support for the industry continues to grow. And as new reactors come online, they’ll need all kinds of yellowcake to get going and keep going.

 

About the Author

 

 

Luke Brocki is the managing editor of uranium news site U3O8.biz. He’s an award-winning, Vancouver-based journalist with an academic background in the natural sciences. He splits his time between U3O8.biz, the Canadian Broadcasting Corporation and freelance writing projects.

 

U3O8.biz - offers uranium investors and the industry comprehensive news, views and commentary on all aspects of the uranium business including information on the industry's leading companies, players, news and events

 

/see: http://www.stockhouse.com/shfn/editorial.asp?edtID=38967

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COMPLETELY!

 

On virtually every junior.

 

Walk - would you mind starting a thread on some of the NatGas jnrs you're following?

 

I'm bullish on Nat Gas but I don't know that many companies.

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i feel a palpable pressure to invest in this sector

that has ended badly in the past when i have succumbed to it

so maybe yes - good shorting opportunity

 

Skinny,

If you dont want to chase gold or oil, Look at some Uranium stocks.

I bought in-the-money calls yesterday on UUU.t and DML.t

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(from the GIP thread)

 

IF YOU LIKE GIP's, here's an idea to consider:

 

Buy some cheap Uranium stocks- they are now at a level that "makes sense", and so is Uranium.

 

Here's the Uranium etf, as traded in Canada

 

U.t/ Uranium participation ... update

aa2mz3.gif

 

How to play?

Here's what I did, I bought in-the-money ($5) calls on:

Uranium One / UUU.t

Dennison / DML.t

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Here's what I did, I bought in-the-money ($5) calls on:

Uranium One / Dennison /

 

The UUU news today was quite interesting, and it's also interesting that as UUU went down, Denison went up.

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The UUU news today was quite interesting, and it's also interesting that as UUU went down, Denison went up.

 

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

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