URANIUM STOCKS: The ticker symbol nightmare!
Saturday, February 10, 2007 at 10:20AM
Uranium Stocks in Other
The following is an extract from an email from a reader in the USA who finds some of the uranium stocks difficult to find and the stock ticker symbol situation just as difficult to navigate as we do.

Hi Bob at Uranium Stocks,
In my search for a couple of good uranium stock plays I ran across your site, which I really appreciated. Many of these stocks appear to be Canadian, and I am in California. When I did a search for the ticker symbols, though, my program brought up, for XXX Incorporated, for example, no less than 9 different tickers. I want to be sure I am buying the right one! Do you have a list of the symbols for the stocks you have on your watch and buy lists? I can buy Canadian stocks thru my broker if I call them, but I was hoping some might have Nasdaq OTC symbols, so I could just do it myself.

The first thing that we have got to appreciate is that this market for uranium stocks is extremely small and the trading is consequently rather thin. In one of our articles we demonstrated how a million dollars could move a stock either way as that was the total value of the shares traded on a single day. You would need a huge amount of dollars if you wanted to move a stock that is a constituent element of the DOW.

This ’thinness’ is unattractive to some stockbrokers as their living largely depends on moving big volumes of money in and around the market. It is easier for them and unfortunately some of them just cannot be bothered with the task of doing the same amount of administrative work for an order worth a $1000.00 when there are bigger fish to fry. It is a little disappointing to sign up to a web based trading broker who’s sales pitch suggested that you could trade anywhere, at any time etc. But they are there to make money too!

Now remember the old adage of not putting all your eggs into one basket, well it applies to investment. If you have a significant amount of cash in the market then we would suggest the use of more than one broker. If a broker should go ‘pop’ in the middle of the night then you have not lost everything. The other advantage is that you can chose a broker based on the geographical area of your investments. Here at uranium-stocks we currently use three brokers, as it is horses for courses in this market.

When you think about it not all companies actually qualify for a listing on the large American exchanges, as they do not match the investment criteria required by that particular exchange.

A fledgling exploration company with a small market capitalisation begins life on the smaller stock exchanges such as the Toronto Venture Exchange. As the stock matures it will qualify for listing on the big board, the Toronto Stock Exchange. Should the management decide that it would be beneficial to gain even more exposure for their company then they would apply for a listing in the America and Britain and so on.

Now with the exception of one or two of the larger uranium stocks you will not find too much to get excited about on the larger stock exchanges, in our humble opinion. In fact by the time some of the smaller explorers reach the sort of maturity required for such listings we think that they could possibly have done their run and we will be out!

The ticker symbol confusion is an absolute nuisance we agree and you would think that the stock exchange fraternity could put their heads together and resolve this problem. Some companies manage to retain the same symbol in both Canada and the USA which is useful but the number of times we have searched for a company using the ticker for a stock in the mining sector and come across Big Joes academy for body builders, no disrespect to Big Joe if such a company exists, is really irritating.

In conclusion to alleviate this problem in all of our articles we have tried to remember to state the companies full name, ticker symbol and the exchange that it is trading on.
If you are having difficulty locating the company then try the following:

1. Type the ticker symbol: XXX if you have no luck then;
2. Type XXX.TO for the Toronto exchange, if that fails try:
3. XXX.V for the Venture Exchange.

It is a little hit and miss, but a visit to the companies website should tell where they can be found. If they can not be found on your web based trading portal then you are stuck with a choice of using the phone to place your orders or setting up another account that encompasses the areas in which you want to trade. We have made our choice.

Be patient it is worth the hassle.

07 February 2007

Article originally appeared on Uranium Stocks (http://www.uranium-stocks.net/).
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