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« URANIUM: Sealed Bids Only Please! | Main | Rampart Ventures Inc: Interesting chart »
Tuesday
Feb202007

Tell us about your best stock

We are asking readers to tell us about their best stock pick with the view that your thoughts will generate more discussion, bring new ideas, help us all to be more aware and therefore better informed to make better investment decisions.

Below is one of our readers best stock picks, which we hope, is of interest to you.


My best uranium stocks pick?

This is difficult to define because I believe in having a portfolio of at least 10 uranium miners, give or take, depending on whether they have peaked or bottomed out. Currently, writing this at the end of the day on February 19, 2007, I can only say that there are very few stocks with big upsides left in the short term, as a quick review of the Stochastic shows they are all at or nearly hitting the 100.

As far as profiteering goes, Mega Uranium started the whole thing for me. I bought it back in late October 2005 for $2.62 and it began leaping and bounding in the most outrageous way. Just after I bought it, I put a sell in for 3.69, not really expecting anything, but to my surprise, the very next week it hit that mark and overshot it in one day. It pulled back, I bought it again, and then it did it again, going to almost $5. It kept acting this way and I did make some money on it (up 350% in a very short time). It peaked at around $11 before it split. It is hard to say it is my absolute favourite on an emotional level, because I have made some other great investments, too. But I know in my heart of hearts that it is going to be very profitable in the future and here is why. For the past few years, rather than focusing on bringing a mine into production, Mega (MGA.TO) has been concentrating on building up its land positions, and has been acquiring other mining companies along the way, too.

The management of the company has great insight to this end. But MGA isn’t alone out there; it has other alliances that seem to be pointing MGA towards targets. Regardless, they are going to be one of the biggest, once they get all their resources to the NI43-101 compliant stage; the difficult thing is that we can watch other miners ramp up to production and the focus of the market right now seems to be on those companies. That sort of leaves MGA looking likes a quiet company. Here is what I know about MGA. MGA just completed its takeover of Twenty-Seven Capital (27). Well, 27 are in a joint venture with Cash Minerals in the Wernecke District, and Cash is 10% owned by Pinetree. Funny thing is, Pinetree also owns about 6.8% of Mega. MGA used to be called Maple Minerals (MM) and MM has gold properties, too. And MGA owns Red-Hill in Australia, with its Ben Lomond uranium property. To wrap this up, MGA is either going to be one of the biggest miners or it will be eventually gobbled up by one of the giant miners at a huge premium.

Either way, if there are any patient purchasers out there, look to see MGA going to $60 over the next 2 years. Sound crazy? You bet. But what does it mean when you hear that the uranium bull market will be the biggest bull market ever seen in the history of the stock market? Bigger than 1970 oil, bigger than 1990’s Internet. I have no crystal ball but the more I learn, the better this all looks. One of my big mistakes through the past year was trying to time the market. That might work in a volatile market but it fails miserably in a bull market with a serious up trend in place. I’m discipline myself to “buy & hold”. Whatever uranium stock you buy will make you money, but choose wisely. There will be some crocks out there.

Remember when mining companies changed their name and became Internet companies overnight?


By Bob G
A reader

We really enjoyed this article particularly the last line, so many thanks to Bob G for sending it.

If you can find the time to tell us about your best stock pick it would be greatly appreciated as we are sure that everyone benefits from pooled knowledge.

20 February 07


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Reader Comments (22)

Agree completely. There is one other hulking superstar out there and it's name is UEX. They have a such a rich deposit which they are continuously expanding without even trying very hard (the final reserve base is starting to look silly) - another reason they are keeping very quiet about this.

For value, nothing beats EFR today, 2mines that will start production of ore in 2008 and a third mine in 2009-2010. All expenses paid for with vanadium credits for zero share dilution. That will also pay for all the exploration and drilling to be carried out once the mines start producing ore. Managed by the same team as in the 70's and 80's before spot prices collapsed (with the exception of Jerry Grandey who went to Cameco).

Another massive blue sky is PXP, staggering amount of drilling pending in 2007 to delineate unconformity zones in Athabasca led by an all star team.

Disclaimer - hold EFR in portfolio (no UEX or PXP)

There are a couple of juniors that are going the same way as PXP but cannot state the same (one is in Yukon drilling away in the Wernecke Breccia among others) and the other is in the CMB) until have established positions in them. Cheers.

February 20, 2007 | Unregistered CommenterSandy K

My advice,as a beginner,to all other beginners,is quite simple.With the notable exceptions of Cameco and the large resource companies like BHP and Rio Tinto ,start with the largest cap stock and slowly work your way down to the smallest,with a few exceptions along the way.You can also use the same technique with the land area or "pounds in the ground" or better still the market cap divided by the "pounds in the ground." In short you can't go very wrong,when a rising tide is lifting all the boats.To actually do this be prepared to own a lot of different companies making each investment as SMALL as possible to spread the risk.In short,create your own uranium stock fund, as there are no uranium funds on the market yet, although Pinetree Capital, PNP.TO, has about 22% uranium stocks and the Middlefield Capital Group has the Uranium Focused Energy Fund in the pipeline and there must be others somewhere.In closing,don't do what I did,which was to "waste" hundreds upon hundreds of hours over a few months of time studying 300 different uranium companies and trying to find the absolute best investment,while the market was going UP WITHOUT ME.Try doing what I'm doing now: Simply start at the top of the list and work down, with small amounts of money in each investment,while your doing your homework. Happy landings,from "INVESTAMANIA"

February 21, 2007 | Unregistered Commentercarl martin

I would like to present my thoughts on an up-and-coming micro-cap that I’ve recently researched & heavily invested in, Trigon Uranium Corp [TEL.V]. It is my belief that well managed micro-cap Uranium companies located in the US Sowuthwest, due to Denison and SXR’s recent public statements for their plans in the area (and Sprotts recent Feb 2007 research of the US SW being the hot play for 2007), as well as the fact that there are existing mills. I’ve provided my DD below, as well as some details on TEL.V.

My belief is that we are witnessing a paradigm shift in the Uranium game from "plays" in Africa, Australia, Athabasca, NWT, Labrador, Mongolia, et al to the more conservative, mining friendly, lower cost domestic energy "plays" located in the US Southwest, which is just starting to be driven primarily by Denison Mines and SXR UraniumOne. If you look for them, there are subtle hints (and some not so subtle) being dropped by these two companies. Near-term successes by some of the micro-cap juniors in the area have drawn the attention of the Intermediates, as they work to add shareholder value in the short - medium term, not wanting to miss out on what is becoming one of the biggest "bull" markets in commodities history. Like any public company, the goal is to create shareholder value - and fast.

These two have seen the potential that exists in the region, and have positioned themselves quite nicely through their mills. They also realize, as most market students realize, to drive share price, you need a very large market to draw from (shareholder & potential investor base). What better (Capital) market than the United States?

DML-T and SXR-T starting to publically detail their NEAR-TERM US plans which is now just starting to bring investor attention to what has been an undervalued area, similar to the way PDN-T has done in Africa. Until this very recent (and very early stage) shift in focus, investors have historically sought out other hyped areas of interest such as Athabasca, Labrador, NWT, Australia, Mongolia, and Africa. Past successes, and/or anticipation of policy reversal (Australia) did wonders for any company working in those regions. Now that the Intermediates have shifted focus to the US southwest (ultimately Cameco will join the game in the region), the same benefits will be reaped by micro-cap juniors in the area that have been seen in other prospective areas.

Specifically from Denison’s NR:

"Denison said it will also begin exploration in the United States after a
25-year hiatus. Work will initially focus on its mines with

And a previous NR:

"In the United States, Denison's exploration activities are ramping up after a 25 year hiatus. An estimated 90,000 feet (28,000 meters) of drilling is planned in 2007, with work initially concentrating near the Company's permitted and producing mines in Utah and Colorado."
I believe they will do a combination of acquisitions and JV arrangements on properties located close to their existing producing properties/near-term producers, and Mills. It would only make sense that you would want to capitalize on economies of scale by building a critical mass of properties & JV properties surrounding your Mills in order to lower overall costs to produce, and increase production.

Based on this, I would suggest you may want to take a serious look at micro-cap plays in the region. The best option I have come up with is Trigon Uranium Corp [TEL.V] I believe these guys will get taken out by DML or SXR, or JV’s with either Denison, or SXR due to the
proximity of their historic land positions, and size. See below my DD on them:

Trigon's Henry Mountains, Utah property has a total of 886 mining claims and

3 Utah State Leases totaling over 19,200 acres. It adjoins Denison Mines.
Denison Mines Tony M, Southwest, Copper Bench and Indian Bench uranium
deposits where Denison Mines Corp. has announced plans to start uranium
production in 2007. Phillips Uranium (which was a subsidiary of Phillips
Oil) performed considerable work on the property. Phillips Uranium lost
interest in claim in the lows of the last uranium cycle and Trigon ended up
acquiring the property and the data. The uranium mill at Ticaboo (Shootaring

Canyon) is located within 15 km south of the project area.
For a map showing the Company's land position in the Shootaring Canyon area,

please visit:

http://files.newswire.ca/569/ShootaringCanyonmap.pdf

------------------------------------------------------------
Trigon's Wray Mesa, Utah Uranium Property is favorably located with its
western boundary situated within 1/2 mile of the Pandora uranium mine. The
property consists of 499 mining claims for a total of approximately 10,000
acres.
http://www.trigonuraniumcorp.com/_resources/projects/wray_mesa_location_utah
_scale.jpg

------------------------------------------------------------
Marysvale, Utah: 5,460 acres immediately to the east of the “Central Mining
Area” of the Marysvale Mining District. From 1952 to 1996, 275,000 tons of
ore produced 1,100,000 pounds of Uranium (U308) from various mines in the
Central Mining Area. The Marysvale project area now covers 227 claims and
two Utah State Leases, or approximately 5,500 acres.
http://www.trigonuraniumcorp.com/_resources/projects/project_summary_1.jpg

Also, If a potential acquirer of Trigon had any plans of raising additional capital via an attractive flow-through offering, their Northern Canadian Diamond division provides the vehicle (prior to spinning them off as a sep entity). I have no real interest in Diamonds in general, however it is important to note that their Diamond division is comprised of the technical team who discovered the Ekati Diamond mine (largest in North America) while with Diamet, and subsequently sold the company to BHP Bilton. If I remember correctly, it was a small penny stock, ran up, split, and eventually sold for $20 p/shr to BHP. I believe they have DeBeers currently funding 100% of their exploration activities

Finally, from today’s TEL news release detailing another addition to their team (arguably, on of the top Uranium Miners in the US), I would suggest that their expansion into New Mexico, Wyoming, and additional Utah properties is a forgone conclusion (If you read between the lines)

February 21, 2007 | Unregistered CommenterSam

Interesting thoughts, thanks Sam.

February 21, 2007 | Unregistered CommenterUranium Stocks

Great report Sam, but you can't just summarily dismiss the mining activity taking place all around the world. There is the new area called Thelon Basin in the Nunavit area, NWT. And how about the Wernecke Mountains in the Yukon. And the Central Mineral Belt of Labrador. As much as you would like the USA to be the biggest and the best, that title already belongs to the Athabasca Basin (40% of the mined uranium). And Australia has 40% of the uranium in the world in it's ground, waiting to be mined, waiting for the political go-ahead. Yes, Trigon may do well and I hope you will make big bucks. Did you know that Pinetree Capital (PNP.T) owns 10% of Trigon and is it's commercial banker? Don't start gazing into the crystal ball and making unfounded projections, though, just sit back and watch it unfold. I recommend you buy at least 10 miners, and hope that 7 or 8 of them make something of themselves.

February 21, 2007 | Unregistered CommenterBob G.

My apologies to Sam and other readers. Pinetree does not own Trigon (that I now know of). It was Tri Origin that they own, a gold miner.

February 22, 2007 | Unregistered CommenterBob G.

It just goes to show how easy it is to make a mistake when the names are so similar. It drives us nuts when a ticker symbol gives us half a dozen stocks to choose from!

February 22, 2007 | Unregistered CommenterUranium Stocks

Sorry, had to re-create my profile.

Regarding Trigon, Pinetree does have a position in the company as per PNP-T's announcement on December 12th -

http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGenerator&date=20061212&archive=ccnm&slug=0362943001

I agree, there are other fantastic plays available, however, as Sprott's recent report points out, the desire for utilities to secure domestic (safer) supply, coupled with the extreme fragmentation in the US Southwest for Uranium assets leads them, and I to focus on the US SW in 2007 as there will be consolidation. International miners such as PDN and SXR (UUU) need to diversify their supply to US Utilities as they become wary of technical difficulties in the Basin, and political uncertainty overseas.

I too hold a "Basket" of Uranium's with global coverage. I only meant to point out that the US SW provides a potentially larger near-term return on investment for 2007 due to the factors presented.

Sam

February 26, 2007 | Unregistered CommenterSam - Samantha

Nice website and good comments too!

I bought STM-V Strathmore minerals that owns land in the United States and Canada. The uranium spot price was at 60$. Since it is mostly an exploration company it was greatly influenced by the increasing cost of uranium in past few weeks.

The particularity of the company is that they own mines that were first exploited in the late 1970's after the big surge in oil prices. Recently they have signed an agreement in order to start a mill in new-Mexico. Also they have pointed out that they want to spin off their USA activities from the Canadian ones. They have found a great amount of uranium in northern Quebec and they are also in Saskatchewan.

The company presents itself as a strong long term holding and it has great potential and fundamentals are really solid. After the commodity sell off from last week the stock price rebounded quite rapidly so as many other uranium companies. This shows that the uranium sector is not forming a bubble and the upward trend is really justified and not based on speculation.

Charles

March 9, 2007 | Unregistered CommenterCharlesL

Well, we do not own Strathmore Minerals but we will take a look. However we do agree with your comments about the upward trend being justified and not just a speculative play.

March 9, 2007 | Unregistered CommenterUranium Stocks

This article seems to generate a lot of interest. I'm enjoying reading about others' investments, but I felt that I didn't really do MGA justice, as I was winging it based on what I remembered. Here's a better overview:

# Mega acquired 100% of Uranium Minerals whose asset is the Ben Lomond uranium-molybdenum deposit in North Queensland, Australia that contains a 43-101 Indicated Resource of 7.9 million lbs and an Inferred Resource of 2.8 million lbs (1). In addition, the deposit contains 9.8 million lbs molybdenum based on an average grade of 0.15% Mo(2).

# Mega acquired the Georgetown Project, Maureen uranium deposit (historical resource 6.5 mill. lbs) in North Queensland, Australia.

# Mega entered into an agreement to acquire Future Metals and Energy Ltd., holding 4874 km2 around the Georgetown Project in Queensland, Australia. Contains historical resources totaling 6.4 million lbs U3O8.

# Mega acquired Hindmarsh Resources, 14,000 km2 of ground with discovery potential in S. Australia and N. Territory.

# Mega acquired Redport Ltd., whose main asset is the 23.7 million lbs U3O8 Lake Maitland resource in Western Australia

# Mega entered into an Alliance Agreement with Red Hill Energy Inc. to earn up to a 60% interest in Red Hill Energy’s uranium exploration properties in Mongolia which currently cover 2162 km2.

# In Argentina, Mega acquired exploration permits covering a total of 2766km2 in areas that have the country’s best uranium discovery potential. Priority targets comprise untested radiometric anomalies in the vicinity of the Cerro Solo (10.3Mlbs ) and Sierra Pintada (30Mlbs) deposits.

# Mega entered into a farm-in agreement to earn an interest in 137.5 km2 of ground in Bolivia held by Intrepid Minerals.

# Mega entered into an agreement to acquire the TSXV-listed Twenty-Seven Capital Corp., which has extensive uranium exploration properties in Yukon Territory

# In Columbia, Mega acquired three exploration concessions totaling 48.7 km2.

# In the Mt Kakoulima Ni-Cu-Co-PGM Project in Guinea, West Africa (Mega earning 50% from FNX Mining), drilling by FNX intersections of disseminated copper-nickel sulphides.

# Encouraging results were obtained on gold and base metal targets in the Shebandowan Greenstone Belt in Ontario where the 50/50 Mega/East West Minerals Joint Venture has 100% of seven contiguous properties and is earning 60% of the Ardeen property from Pele Gold Corporation.

Also, on Feb. 26, MGA is partnering with Titan (TUE:TSX.V) in Thelon Basin project, and on Mar. 8/07 announced it is buying Monster Copper (MNS:TSX.V).

That's a lot of activity and it sure seems like there is going to be a point where all this produces fruitful results. I like how they are diversified around the world, but maybe the investment in Bolivia and Argentina is a bit risky politically. Let's hope that the Labor Party in the Australian States changes it's policy, as many are predicting. Apparently, they may allow uranium mining, but not nuclear reactors.

March 11, 2007 | Unregistered Commenterstoneygulch

Update on Trigon - last week they signed an LOI to acquire 6 former producing Uranium Mines and 2 additional prospective Uranium Zones in the US Southwest.

Just an FYI if you're interested...On AM 1060 tonight (March 14, 2007) at 6:00 PM in Alberta or www. ckmx.com

Building a Resource Company: The Trigon Uranium Story - Part Four with Sidney Himmel, president & CEO of Trigon Uranium Corp.

March 14, 2007
Trigon Uranium's Unique Strategy for Growth: How Properties, Partners and People Form the "Three Ps of Progress"
Listen live tonight at 6:00 PM (Mountain Time)

March 14, 2007 | Unregistered CommenterSam - Samantha

Sam, You appear to be our resident expert on Trigon, thanks for the input and the updates.

March 15, 2007 | Unregistered CommenterUranium Stocks

I like the juniors for potential upside. I bought Bayswater when it was Pathfinder and just recently bought some more. It's down a pinch, so I might buy more. The thing is, it's a merged company with properties in all the uranium-associated areas in Canada. I've made a little money (on paper). I just bought some Pele Mountain and it has gone down, but so it goes. I've made some money on URRE--doubled my money, over time--just sold half my position, probably foolishly.

March 20, 2007 | Unregistered CommenterGMiki

June 4, 2007 UPDATE ON U.S. SOUTHWEST URANIUM PICTURE DUE TO SXR'S ACQUISITION OF EMC, AND TRIGON URANIUM CORP. UPDATE:

SXR comments to analysts today regarding their purchase of EMC: "This will go a long way toward our strategy of producing U.S. uranium for U.S. utilities."

My Comments:

- "...a long way...", but not where they want to be yet. i.e. SXR is not done in the US Southwest.

- Will other global producers (Denison, Cameco, Paladin) sit back and allow SXR to dominate the landscape? Or is it more likely we're just getting started on positioning in the United States?

- "...producing U.S. uranium for U.S. utilities." So, US Uranium for US Utilities is apparently a valuable asset, otherwise, why make the comment. Currently, Utilities are buying Uranium that has yet to be produced. Security of supply issues caused by both the geopolitical landscape, as well as the flooding at Cigar and Ranger have driven a premium on domestic US supply (i.e., would you prefer to buy anticipated future production from Cigar Lake, or the Colorado Plateau? I'd pay a little more for the safer one)
------------------------------------------------------------
Froneman said the U.S. has 103 nuclear facilities with an annual demand of about 50 million pounds per year. But domestic production is only about four million pounds per year, he said.

My Comments:

- Based on the supply/demand statistics listed by Froneman, are we at the beginning, middle, or end of this current Uranium bull-cycle? I'd say closer to the beginning.

- In the Uranium industry, big US money has to date, stayed on the sidelines. There is literally no major US company capitalizing on their own domestic Uranium Assets...yet. With this kind of domestic supply/demand deficit, it is reasonable to surmount that a major US company will eventually move (likely out of nowhere) to capitalize on the domestic market.

------------------------------------------------------------
Through timely staking and acquisitions, EMC has amassed over 250,000 acres in the western U.S.

Trigon:

- Marysvale: 5,500 acres
- Henry Mountains: 20,000 acres
- Wray Mesa: 12,000 acres
- Red Canyon: 2,627 acres & nice and close to our friends at SXR http://www.trigonuraniumcorp.com/inSitePresent/
- Future Energy LLC Acquisition: Access to 150,000 acres, extensive geological data base encompassing the entire Colorado Plateau (we now have access to data on potentially acquired land, as well as our competitors land in the CP area), and we now have the ability to syndicate deals (i.e., broker deals for up to 150,000 acres of staked Uranium properties to other companies such as SXR, DML, URE, EFR, etc…) where we could receive money, stock, and or royalties from future production, etc…Huge, huge win for us, but the market has difficulty in placing value on this deal until it’s wrapped up into Trigon. Being a private company, their records are not public and can only be evaluated by the analysts once they start reporting under Trigon.

Total:

- 40,127 acres (excluding Future Energy LLC)
- With access of up to an additional 150,000 acres which maxes us up to 190,127 acres to-date (although I believe they will likely syndicate a large portion of the properties).

Finally, looks like Trigon is well on their way to proving up 5 million pounds on the Marysvale Utah property (see their updates) with the highest grades to date 0.723% eU3O8 (14.5 pounds eU3O8 per ton). Final drill results should be announced within the next 2 weeks.

June 4, 2007 | Unregistered CommenterSam

Today my favorite stock is NWTMF on AMEX and NWT on the TSE.
It moved north 20% due to the fact it partnered up with URAMIN on a Niger project. They apparently have a competent, credentialed team running the show, however, it all boils down to getting the product to market if you want the Powerball payday. The joint venture gives the company a total of 1,673,644 acres. I started buying this stock at $.25 US. I'll continue to buy this play on re-tracements. So let the drilling begin.

June 4, 2007 | Unregistered CommenterRobert

Sam,

Thanks - you have certainly done your homework!

June 5, 2007 | Unregistered CommenterUranium Stocks

Robert,

Let the drilling begin - bang on! lets see some results.

June 5, 2007 | Unregistered CommenterUranium Stocks

Uramin @ 1.15
Santoy @ .34
Unranex @ .53
Kilgore @ .65

June 10, 2007 | Unregistered CommenterODW

I have now sold all my uranium shares and have invested 50%in Geiger counter fund,and 50%in Uranium One,I think they have the best chance of spectacular gains!
Hope so!!!!

September 24, 2007 | Unregistered CommenterLen Fore

There are so many... LBSU: I paid 0.0012 and sold for 0.0028 in a week. It's selling for a whopping 0.0030 today. Darn. Khan Resources, paid 0.14 sold for 0.52 then sold the other half for 0.44 (it's in Mongolia...Dornod may be a great mineral deposit but let's face it the Mongols have never been known to talk it out, historically they simple (as does Chavez...)"take... and their government could go in so many ways. MM: Paid 0.12 it's up to maybe 0.31 and is joining another company (name?) which looks good to me, so I'm holding this one. Dennison, gosh, so many trades... low seventies (cents) sold most near $2, repurchased at 0.93-0.97, sold half at 1.90 to low $2's. Holding onto the rest.

It's sort of been like shooting fish in a barrel. But my best one was AUA Adanac Molybdenum who had declared bankruptcy... It's an amazing orebody, just amazing... I purchased a bunch at 1.5-2cents, then sold all between 085 and 10 cents for an average increase of about 450. I'm still wondering if I should have sold all of it... as it recently announced a ~33% increase in known and indicated reserves. (It'll survive, but like GM, it may become so diluted that I'll take the $ and run) Plus all the gains have an added ~10% since I exchanged my bucks for loonies at ~1.29, of course that can change.

For now I'm mostly back into cash holding on some DML and MM. JP Morgan bank has ~40 trillion in unwound derivatives and currently has a supertanker with one million barrels of oil floating in the ocean and we are bailing this bank out??? Talk about speculation...and by the way, it's your money that is being used for this. If we don't have a correction back to dow 6500 or more likely dow 4500 then I will be utterly amazed. And yes, I think I'll have a chance to buy back KRI at 15 cents again and then the risk/reward may well be worth having stock in Mongolia. Thanks for all the input...you're a great bunch here!

May 7, 2009 | Unregistered CommenterSteve

Thanks Steve we are really pleased that you are doing so well and when you buy your next hot stock drop by and mention it here Im sure our readership would be interested in where you go to next.

May 7, 2009 | Unregistered CommenterUranium Stocks

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