Uranium stocks: Strange Days!
Wednesday, May 9, 2007 at 9:53AM
Uranium Stocks in Uranium Mining Stocks
This current situation reminds me of a song by The Doors called “Strange Days” produced by Electra/Asylum Records in 1985, which is apt.

The Doors

We are all aware of the old adage “Buy the rumour and sell the news” so you have sold on the good news. BUT! What if the good news just keeps on coming? You will be all sold out by the time the stampede for uranium stocks arrives. Then what? Buy back in near the real top?

We now have a spot price of $120/lb. We started this year at around $70/lb so that is an increase of $50/lb or 71% in just over four months.

Uranium chart 09 May 07

We have been bombarded with calls telling us that The Futures Market has kicked off this week with figures of around $140/lb for June delivery, that’s next month!

What would happen if any of the other commodities such as Gold, Silver, Oil, Gas or Copper were to increase by 71% in the next four months? The respective Bulls would change their drinking habits and stop drinking house wine and become connoisseurs of fine champagne. We watched yesterday as a fair number of uranium stocks put in a red day and a few managed a modest gain. A troll through our emails showed that only two of our readers were actually buying yesterday. Maybe we have missed something here and history will reveal the error of our ways, if you know what that something is then please let us know. If we haven’t missed a trick then we are sticking to our forecast of 200/lb, which you know we have been banging on about, for a long time and not in a whimsical fashion either, as this is what we believe.

All across the globe there are new announcements from various governments of their intentions to pursue an enlightened nuclear policy. Are these the smart ones? No! the smart ones are aware of the effect that such proclamations are having on the price of uranium. The smart ones know exactly what their future requirements are and so they will secure the supply before they make known their dependency on uranium. Would you ever begin negotiations with someone by informing them of your desperate need for their product? What a bunch of Loonies.

The investment world in general is waking up to the importance of uranium and the potential for profit by investing in uranium stocks. Sooner or later the penny will drop and the utility companies along with the brighter governments will go directly to the source and mop up any uranium miner of substance.

Pawn the cat, make do with one car, do two jobs, do whatever it takes to raise the cash and put a foot on some uranium stocks as fast as you can.
Article originally appeared on Uranium Stocks (http://www.uranium-stocks.net/).
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