Crosshair continues to disappoint since hitting a high of $4.00 so we are taking our cash back onto the sidelines.

From the chart we can see that CXX is heading south and not putting up much of a fight. The drilling results issued on 30th January 2007 did nothing for the stock price. The $3.00 rise in the price of uranium also did nothing for the stock price. These could be tiny indicators that this stock is just too far ahead of itself.

There are times when we just have to bite the bullet and be happy with a small profit for now. We bought in at between $1.86 and $2.00 on 25th September 2006 and sold for around $2.60 today. So using the $2.00 level for calculation purposes we are banking a profit of 30% made in just over 4 months.

This is a short-term gain and not really our style. We may even regret coming out, however, until we see the direction change we will sit this one out.

If you decide to hold then we think that you should be okay eventually, as the price of uranium continues to head higher taking with it most of the uranium stocks.

In the debate regarding this investment, the short-term gain narrowly beat the patient game. As we have said before we are not very good at patients. Sometimes our behaviour is reminiscent of those vultures in the movie ‘Jungle Book’ perched on a branch one of them says something along the lines of “patients my a** I’m going to kill something”

When you believe that your cash can be deployed better elsewhere, move it.
Cheers for now.

05 February 2007