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« Uranium: Spot price up another $2.00 to $80/lb | Main | UEX Corporation: Up 31.90% in one day! »
Sunday
Oct212007

Uranium-Stocks.net: portfolio Update 21 October 2007

To many investors it comes as some relief that the spot price for uranium registered a slight upturn recently as we can see on this chart courtesy of u3o8.com.
Uranium Chart 20oct07
Every little bit helps and it is without doubt pleasing to us to see the recent down trend halted. But, the focus must remain on the long-term price, which is holding at $95/lb. The long-term uranium price has not fluctuated as widely as the spot price and has remained fairly steady. In a market this thin the long term indicator reflects the true situation more accurately than the spot price which is subject to a myriad of influences such as floods, hoarding, government intervention, private investor speculation, fund buying and selling, political instability, geographical hardship and challenges, liquidity calamities, et al. Spot prices in any commodity are subject to knee jerk reactions as our emotions run riot.


Since the last update many of the stocks have started to recover. Its not a time to celebrate but if you have the cash and the nerve it is a time to gently accumulate some more of your favourite uranium stocks.

Below we list the uranium stocks that we have an interest in or are watching with the view to making a future investment. We are also looking for the occasional trading opportunity as we are small enough and should be nimble enough to move in and out of a particular stock quickly as we did in our portfolio of silver stocks recently. This is difficult for the big players who own big positions in their favourite uranium stocks as the thin liquidity of some stocks does not allow them to sell a large position at the push of a button. But that is no excuse for us, so going forward we will suggest from time to time one or two short term trading moves as we did recently with Khan Resources.

Cameco Corporation – Watch
Cameco was trading at $55.09 on TSE recently, but has been down as far as $39.25 and closed at $43.66 on Friday. CCO has a fair number of fans but we just can’t see it outperforming this sector.

RPT Uranium Corp – Watch.
We bought RPT on the 19th February 2007 for $0.42 and sold it for $0.62 on the 13th June 2007 for a profit of 47.6% in 4 months. We still like this stock and so bought it back at around 50 cents; RPT now languishes at $0.26, which is disappointing. This is a small company with a market capitalisation of $24 million. Success rests on the Sibley project where the Company has commenced a 2500-metre diamond drilling program on the Frazer Creek uranium zone on its Malborne Lake claim block near the south eastern margin of the Sibley basin north of Thunder Bay, Ontario. Uranium mineralization is exposed over a 35 metre by 25 metre area, and the first eight grab samples to be analysed averaged 0.242% U3O8.

Uranium Participation Limited – Buy
U was trading at C$10.99 last month and closed on Friday at $12.49, which is a terrific improvement over one month. We bought at $11.97 on 21 November 2006 so U is now showing a small paper profit of 4.3% We will continue to hold, as it offers direct exposure to uranium without the risks inherent in mining.

Strateco Resources Inc – Buy
We made a small investment in RSC at $2.30 so were pleased to see it close at $2.52 last month, however it has fallen back to $2.41, but we are still in positive territory.

Fronteer Developments Group
Fronteer has been transferred to our gold investment account as we now consider it to be more of a gold play than a uranium play even though it still owns the lions share of Aurora Energy Resources, which we track here.

Crosshair Exploration and Mining Corporation – Neutral.
Having taken a small profit we continue to watch CXX. The stock was trading at $1.73 last month and closed on Friday at $2.09. Listing on the AMEX as CXZ provides this stock with exposure to the American stock market where there are not too uranium stocks to choose from.

Laramide Resources Limited – Buy
This stock was $7.36 last month and closed at $8.63 on Friday. We bought at $5.78 on the 28 July 2006 so we are pleased to see this recovery. When we were sitting on a paper profit of around 80% we sold half in order to buy other uranium stocks, as we needed a bigger spread of stocks. Our current holding now shows a profit of 44.63%

Energy Metals Corporation – Now part of Uranium One

Eagle Plains Resources – Buy
This stock is mainly featured on our silver website, but it does have some uranium interests. EPL was trading at $0.76 in the last update and is currently trading at $0.82, for a nice move since we bought it at $0.53, giving us a profit of 54.7%. As we mentioned previously the news flow continues at a reasonable pace and appears to have been well received by the market. Hold on tight to this industry’s ’Project generator’

Mega Uranium Limited – Buy
We bought MEGA at around $4.0 on 27 July 2006. MGA is now trading at $4.35 so we are once again back in the black. MGA has a very good cash position and is well managed so we expect to see it trading a lot higher in the near future.

Rodinia Minerals Inc. – Watch
RM was $0.80 when we first wrote about it on 15 August 2006 and is currently trading at $0.62 so a fairly volatile stock. The volume is still tiny although it is improving with turnover hitting 151,000 on Friday. It is a small company with a market capitalisation of $14.05 million.

Santoy Resources Limited – Watch
However having decided to sell three of its projects to Mega for 400,000 common shares in Mega we decided to sell. We sold on 23 April 2007 at $1.39 for a profit of 70% in 4 months. Santoy now trades at $0.55. This stock is not for us at the moment but they do have a number of interesting joint ventures underway so keep an eye on them.

Khan Resources Ltd - Buy
We bought Khan on the 5th March at $3.63 and it dropped to $1.33 due to licensing issues with the Mongolian regulators. So, in anticipation of Khans management team finding a resolution to this problem we decided to buy again. (See Khan Resources: A speculative buy) the stock rallied and we took a profit of 15% in a matter of days before the stock fell back. Khan closed on Friday at $2.71 up from $2.38 last month so this stock is making progress. However we do need confirmation that the outstanding license issues in Mongolia have been resolved. Also note that LAM took advantage of this turbulence and bought 5.6 million shares in Khan, a good investment in our opinion.

Aurora Energy Resources - Buy
We bought Aurora on the 5th March 2007 at $14.17 and it has traded as low as $10.40 since then, however it is now trading at $15.27 much to our relief, for a small gain of 7.76%.

Strathmore Mineral Corporation - Buy
We bought STM on the 14th April 2007 at $4.96 and it is currently trading at $2.55, down overall about 48%. STM has not joined in this recovery, which is disappointing however we will hold for now.

Ur-Energy - Buy
We bought Ur-Energy on the 23rd April 2007 at $4.75 and we also gave a second buy signal on the 24th August 2007 when we acquired more stock at $3.03. URE closed on Friday at $3.24 so hopefully the recovery has commenced for this stock.

UraMin Incorporated – gone to that big AREVA in the sky!
We bought UraMin on the 15th May 2007 at $6.72 and sold it for $8.36 on the 22nd June 2007 for a gain of 24.4% in 6 weeks. (Niger Uranium could be a possible replacement but the political situation in Niger is not the best.

Uranium:
We are sticking with our target prediction of $200.00 per pound for uranium although it may now take longer then previously thought. Don’t be put off if we haven’t mentioned your favourite stock we do get it wrong now and again as evidenced by reading our updates. We have survived the carnage and things are starting to look at little brighter.

If you are a new comer to this site please do get involved and add your comments to any of our articles whether you agree with us or not as this will add balance to what we say and be of benefit to everyone. No, you can’t use naughty words.

Please accept our apologies if you were unfortunate enough to visit the site when unwanted Spam is present we have now installed more Spam protection so it should diminish day by day.
Please feel free if you haven’t joined to sign up to the forum and get involved with some of the debates. If there is a subject or uranium stock that you want to discuss then please start a new thread and we will follow with our comments.

Many thanks to all of you who have signed up for our free Uranium Stocks Newsletter; we hope that you are enjoying it. We now have 3461 subscribers up from 3364 subscribers last month and approximately 22,000 readers per week which include a number of stockbrokers, banks and financial institutions, Chief Executives of uranium companies, etc.

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We have been inundated with requests for individual advice, which we are not allowed to give by law so please accept our apologies for not piling in to help you. We have also received a number of requests to cover individual uranium stocks or unique geographical areas, which we will try and get to in the weeks ahead.

A better month overall! Be patient and hang on in there.

Finally well done to the South African Rugby team who beat England last night to become world champions and well done to England who despite being under dogs throughout this competition did us all proud.











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Reader Comments (9)

Why no coverage of DML and UEX ?

October 21, 2007 | Unregistered Commentercartach

Thanks for your newsletter, its appreciated. I would like to comment on your view on CCO. Uranium has in the future nowhere to go but up. The world wide switch from oil dependency to some other form of energy(wind included)assures this. The number of new reactors being built has greatly increased so for now anyway uranium is seen as a more immediate solution. CCO is a producing uramium company set to increase production with Cigar Lake. They work in a safe, stable country(Canada)how much is that worth? I am not at this time a shareholder of CCO, but am considering buying some CCO. I would be interested why you believe CCO is not able to produce some substancial gains over the next 3-5years. Kirk

October 21, 2007 | Unregistered CommenterKirk Smeeton

Thorougly enjoy your newsletter.Keep up the good work.Very informative.One Question.Do you know about Universal Uraninum?They are on to something big in the central mineral belt in Labrador.They have one area the two time showing that they are waiting for a 43-101 estimate on another area they are drilling with two rigs two more sites with strong indications of u308.Other sites waiting also and the stock price is less now than before all this good news.Maybe you should look into this.Great opportunity.WILLIAM POWELL

October 21, 2007 | Unregistered Commenterwilliam powell

Could you possibly comment on whether it is reasonable to buy the Uranaium resources Inc. (URRE)? Is the URRE a good play on the rising uranium prices? it seems to me an undervalued companys having in mind its uranium mining operations, the proven uranium resource base and the recently acquired uranium mill with aditional uranium resource property from the BHP Billiton?

Thank you.

Gintaras
Vilnius, Lithuania, Europe

October 21, 2007 | Unregistered CommenterGintaras

Your newsletter is greatly apprciated and well done...thanks for the insights. Would you please comment as to why your portfolio and/or monthly review does not include Paladin Resources, Energy Resources of Australia, Energy Metals (Australia), Denison Mines and UEX Corporation. I believe your readers might be interesed in learning more about these potential opportunities.

October 21, 2007 | Unregistered CommenterDave Mack

An interesting interview with Glenn Catchpole - CEO of Uranerz Energy

October 21, 2007 | Unregistered CommenterPeter McCoy

Kirk,

Don’t let us put you off any uranium stock, CCO may well fly we just cant see it that’s all.

October 25, 2007 | Unregistered CommenterUranium Stocks

William,

We don’t know too much about this stock, Universal Uranium, however if you are familiar with it and can find the time to tell us about it we will post your findings on this site. This will encourage others to contribute their knowledge of the stock and so we can build up a picture as to whether it is worth our investment cash or not.

October 25, 2007 | Unregistered CommenterUranium Stocks

Dave,

True we do not cover all of the uranium stocks out there even though some are very popular indeed. If a stock has been analysed numerous times we find it difficult to add value to what has already been written.

However we have touched on ERA via the Ranger Mine. We also wrote about Denison on 27th January 2007 when we said it was a buy but not yet. At the time it was $11.42, its now $12.04 so not much change there.

October 25, 2007 | Unregistered CommenterUranium Stocks

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