I looked on the tsx.com this morning and did some quick math.
Even though this is all CAD and rough %
the theme is the same - Down - Down roughly 7% to 42%
Most hit their high in April - May
even though Uranium is up @ 13% since then
looks like sell in May and go away has been proven again
What great news do you have to change this over sold trend around?
Even if the Uranium price gets to 150.00 by the end of the year
that is only @ 8% higher than today
Looking forward to your comments.
I just picked a few of the larger Uranium Companies.
Powertech Uranium Corp. (PWE) 4.50 High
Current 2.90 down 35% from high
Denison Mines Corp. (DML) 16.57 High
Current 13.90 down 16% from high
UraMin Inc. (UMN) 7.39 High
Current 6.86 down 7% from high
Strathmore Minerals Corp. (STM) 5.50 High
Current 4.59 down 16% from high
Mega Uranium Ltd. (MGA) 8.98 High
Current 6.19 down 31% from high
Laramide Resources Ltd. (LAM) 16.70 High
Current 10.72 down 35% from high
Ur-Energy Inc. (URE) 5.45 High
Current 4.33 down 20% from high
Forsys Metals Corp. (FSY) 10.20 High
Current 5.91 down 42% from high
SXR Uranium One Inc. (SXR) 18.65 High
Current 15.54 down 16% from high
Aurora Energy Resources Inc. (AXU) 20.09 High
Current 18.30 down 8% from high
The reader raises the question about what good news we might have to reverse this over sold trend. The truth is that we have no secret, inside or magical information that we can bring to this party and reverse the current trend. We hear a lot about the negative sentiment that is currently rampant in the gold market with all but a few dumping their gold stocks. Has this negativity transcended market sectors and landed in our little corner of the market? It certainly looks as though the summer selling is being applied across the board regardless of Net Asset Values, future potential or the underlying of value of a companies asset. This is a tough time to be holding uranium stocks especially if you have recently entered this sector only to see your stocks get cheaper by the day. Those with stocks showing a profit may want to lock those profits in and those showing a loss may want to cut their losses, both situations are understandable.
In any Bull Market there is always a wall of worry to climb and this is no different in that respect and we are faced with it right now. However we tend to think of this way for better or for worse. Firstly the people who have sold now have to decide when to re-enter this market and re-enter they will as the vast majority of them have made a profit out of their recent skirmishes. Secondly, with the price of uranium at these levels the companies who have discovered uranium are now looking at fabulous profits bearing in mind that it costs some of them around $20/lb to $30/lb to recover it. As the uncovering of this sector continues more new players will be attracted to it bringing new money to a still small investment arena. Throw in some merger activity and a few hostile takeovers to attract the spot light and we will be back in business. Not to mention a disruption of the oil supplies either by terrorist activity or by those that have it using it as a weapon for economic or political leverage.
Finally our intention for what it is worth is sit through this period and sell none of our uranium stocks even if these clouds persist for most of the summer as sooner or later the value of these stocks will be recognised and this sector will move very quickly indeed.
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Be brave today.