The world heavyweight champion of uranium stocks has started to box a little reporting a purchase of 1 million pounds of uranium for under $51 per pound and already selling some for a profit as uranium hits $54 per pound.

Just when we were thinking that the giant had gone for a snooze they pick up a few points in the trading area. Well, is this the beginning of a more agile slugger? If so, then apart from it being the biggest with the most uranium they could well add a new angle to their investment attractiveness.

We don’t intend to purchase more of Cameco at the moment and are happy to hold on to what we have. This is the ideal vehicle for investment funds when they come to allocate part of their considerable funds to uranium stocks, large, liquid, stable, geographically and geopolitically sound.

Watch this space it is most certainly warming up.

Go gently.

27 September 2006