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« Threats to the Uranium Bull Market | Main | Strathmore Minerals Corp: BUY »
Monday
Apr162007

Uranium-stocks: Portfolio Update 16 April 2007

The following is a list of the uranium stocks that we hold or are watching and our investment strategy for each company.

Cameco Corporation – Watch
Cameco has yet to convince us that they are out of the woods with their Cigar Lake Project but their stock price has continued to improve despite their problems and trades at $53.72Canadian.

RPT Uranium Corp – Buy.
We bought RPT on the 19th February 2007 for $0.42 and it is currently trading at $0.42, the stock has been up to $0.48 and down to $0.36. We envisage the oscillations continuing although an upward trend does appear to be forming. (This company was previously known as Rampart Ventures)

Uranium Participation Limited – Buy
U is currently trading at $17.35 Canadian and is up 44.9% since we bought at $11.97 on 21 November 2006, which we think is a reasonable return over a four-month period. This is not as exciting as the possibility of hitting the Mother Load but it is steady progress. We will continue to hold, as it is a direct uranium play without the risks inherent in mining.

Strateco Resources Inc – Watch
RSC is currently trading at $3.55 Canadian. We have been watching this one for some time but have not made an investment, which is sad as it is going really well. Strateco has had minor pullbacks but we failed to move! Congratulations if you did buy it from all the team here. The cheaper entry level that we had hoped for would appear to have passed us by: Rats!

Fronteer Developments Group – Buy
Fronteer is currently trading at US$14.17. Our original purchase was made on the 15 July 2006 at around the $4.70 level so that is showing a gain of 201%. As you may recall we sold 50% at $9.29 and bought back in at a cheaper level of $8.33, which is now showing a profit of 77%. Although we made a profit on the short-term trade in hindsight we were surprised by the strength of FRG so we are a little reluctant to try that move again but we haven’t ruled it out completely. We are still quietly confident that it can double in value in 12 months or less, that’s right $28.00 coming to a screen near you in the next twelve months. As we write gold is up $7.30 to $692.10 add that to the $18 rise in uranium and we are not that far from a bewitching hour that could possibly occur when both metals concurrently target the moon.

Crosshair Exploration and Mining Corporation– Neutral.
Having taken a small profit we continue to watch CXX. The stock is trading at $3.16 Canadian and we are still neutral at the moment, as it appears to be going sideways at the moment. Consolidation followed by a move up? If uranium continues to put in staggering performances then Crosshair will go with the rising tide.

Laramide Resources Limited – Buy
LAM is currently trading at $14.73 and has made terrific progress since we bought at $5.78 on the 28 July 2006 for a gain of around 154%. 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.

Energy Metals Corporation – Watch
EMC is now trading at $15.44 and has progressed extremely well since we first wrote about it in September when it was trading around $5.70. We do not own this one and we have probably missed the boat completely as it is now a well-recognised stock. Should an opportunistic entry level show itself then we will probably leap on it even if it means selling the office cat to raise the cash.

Eagle Plains Resources – Watch
EPL was trading at $0.73 in the last update and is currently trading at $0.90 for a gain of 23%. We originally bought this stock as a silver play with a uranium kicker in the days before they spun off Copper Canyon. We no longer hold Copper Canyon but EPL we like a lot and expect it to trade at $2.00 in the not too distant future.

Mega Uranium Limited – Buy
We first bought MEGA at around $4.0 on 27 July 2006. MGA is now trading at $8.61 for a gain of 115%. So it has doubled in less than a year the question now is can it do it again? We think so, but we are of the opinion that uranium will go to $200/lb.

Rodinia Minerals Inc. – Watch
RM was $0.80 when we first wrote about it on 15 August 2006 and is currently trading at $1.00 so it has put on 25%. The volume is still a little on the low side so take care with this one.

Santoy Resources Limited – Neutral
SAN is doing very well up from $0.81 that we paid on 27 December 2006 to trade at $1.53 today. Having decided to sell three of its projects to Mega for 400,000 common shares in Mega we will now have to digest this move. We would have preferred Santoy to keep its assets and push on with their development as we can buy shares in Mega directly. However to own them indirectly is not a problem as we are big fans. We will now watch Santoy closely to see how they perform but as we write they have just put on another 7% so maybe the market knows better than we do and our trepidation could be misplaced.

Khan Resources Ltd - Buy
We bought Khan on the 5th March at $3.63 and it is now trading at $5.30 for a gain of 46% in around 6 weeks. This uranium stock is getting a little more coverage and their story is a good one, so $10.00 here we come.

Aurora Energy Resources - Buy
We bought Aurora on the 5th March 2007 at $14.17 and it is trading at $17.70 for a gain of 25% as we write, a victim of the market shake out, it dropped shortly after we bought it but it is now heading north being propelled by a runaway uranium price.

Uranium:
We still remain confident enough to stick with our target prediction of $200.0 per pound for uranium with a possibility of it hitting $125.0 in 2007. Well that’s what we said in the last update and we are sticking to $200/lb. However after the sealed bids auction where we had predicted a new price of $110/lb only to come up short as the winning bid was $113/lb we now think that our prediction of $125/lb for 2007 is in danger of being shattered. But that would be fantastic for our uranium stocks.

Don’t be put off if we haven’t mentioned your favourite stock we do get it wrong now and again as evidenced reading the above update we have missed some good ones. We can’t win them all but we will try and win most them, as it is our money that is on the block every time we make an investment.

Please feel free to send us your comments we really do appreciate them and they are certainly a benefit everyone.

Our IT expert, Dan Chubb has now installed a Forum, which is already getting some great input, many thanks to those participating we are very grateful. Please feel free if you haven’t joined to sign up as you can table questions about stocks that you are interested in and our readership can answer those questions with terrific insights. We will of course add our two pennies worth because that’s what we like to do.

Many thanks to all of you who have signed up for our newsletter; we hope that you are enjoying the torture that we go through trying to find potential candidates capable of doubling in value over the coming twelve months.

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 also have a number of requests to cover individual uranium stocks, which we will try and do something on over the coming weeks. Some are household names some we know little about so please bare with us.

Have a great week

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Reader Comments (8)

Still looking for some coverage on EFR and WRI. EFR is holding its own pretty well at present even with private placements entering the market.

April 16, 2007 | Unregistered CommenterRay

Nasdaq announced today (april 16/07)that it will have a futures/options market open by mid-may. What do you think of 1) the effect on the 'U' metal and 2) the effect on the share market.
fat

April 17, 2007 | Unregistered Commenterfatfinger

URRE has moved to the NASDAQ and has zoomed. I own a little. Bayswater hasn't done as well as some, but it has great properties. Pele Mountain also is lagging, but I like it. I own both of those--a little.

April 17, 2007 | Unregistered CommenterGMiki

how will this affect uranium stocks

The New York Mercantile Exchange plans to launch next month the first futures contract for uranium amid mounting investor interest in the metal.

The contract for uranium, which is used to fuel nuclear reactors, will provide a way to hedge against rising uranium prices for operators of nuclear power.

It will give hedge funds and other investors a direct way to speculate on movements in uranium prices, rather than investing in uranium mining companies.

Investor interest in uranium has risen dramatically during the past two years, as spot prices have climbed more than fivefold amid growing demand for nuclear power.

Richard Schaeffer, chairman of Nymex, said: “We expect to create a benchmark contract for this important and under-served global market.”

The futures contract will be cash-settled, removing the need for traders to provide a physical delivery point.

Uranium is not exchange-traded, so spot prices are compiled based on industry contracts. Ux Consulting will provide pricing for the new contracts.

Ian Henderson, manager of the JPMorgan Natural Resources Fund, said more than 400 power plants globally depended on uranium to generate energy, with 80 plants under construction or planned for completion within the next 10 years.

He added: “After a 20-year pause in uranium exploration, the supply side of the industry is unprepared to react quickly to the market’s recent price signals.”

April 17, 2007 | Unregistered CommenterRon

This should only lead to more positive moves for uranium prices.
However it may also increase volatility in the uranium market, which may hamper the "perfect" uptrend that we have seen so far. But any dip in the uranium price or uranium stocks will temporary and good news as it will present a terrific buying opportunity.
This is another step forward in uranium being recognized as the fuel of the future.

April 18, 2007 | Unregistered CommenterUranium Stocks

Myself I like the Aussie Uranium Stocks more, since China is starting an uranium reserve. Less transporation cost to get to China.
I have taken positions in all the following Aussie stocks.
(PALAF)(AU:PDN)Padalin Resources.
(SRCSF)(AU:SMM)Summit Resources.
(EGRAF)(AU:ERA)Energy Resources.
(BHPLF)(AU:BHP)BHP Billition
(EYMTF)(AU:EME)Energy Metals

(EWA) Ishares Aussie - ETF
that has a little uranium in it
BHP BILLITON LTD 11.16%
RIO TINTO LTD 2.68%

I also own a just as many Canadian based
Uranium Stocks also. All in all I have
enjoyed and loved Uranium Stocks.

April 20, 2007 | Unregistered CommenterStielf Erdmann

I don't see any mention of Denison Mines which just moved to the American Exchange. That should get DNN more coverage and a higher price. How do you feel about Denison? Which is a better buy DNN of FRG?

April 22, 2007 | Unregistered CommenterJKM

Sorry, but we cannot give personal finance advice.
However FRG is on our BUY list and DNN is not, although we do think DNN is a very good uranium stock which we think should continue to do well in the future. However FRG is the smaller of the two companies and so it may perform slighty better.

April 23, 2007 | Unregistered CommenterUranium Stocks

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