Uranium-Stocks.net: portfolio Update 21 October 2007
Sunday, October 21, 2007 at 9:13AM
Uranium Stocks in Other
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.

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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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