Uranerz Energy Corporation: Close to a Buy!
Saturday, July 7, 2007 at 1:17PM
Uranium Stocks in Uranium Mining Stocks
Uranerz Energy Corporation has suffered at the hands of the profit takers recently falling from $7.50 to close at $4.97 on Friday.

This is one uranium miner that we like but have failed to buy for various reasons. We last wrote about Uranerz on the 5th February 2007 when we described it as “Another Hot Uranium Stock” However if you read the article you will see that we were trying to be patient and hopefully identify a suitable entry point for our cash. Well, just like a bar of slippery soap it took off before we could acquire it.

FEBRUARY Chart:

URZ Chart Feb 07

The stock had jumped from around $3.00 to almost $4.00 so we thought that a little pull back was a real possibility. This didn’t happen and the stock went on to hit $7.50 and we decided not to chase it.

Fast-forward to time now and we can see that this stock has dropped 1/3 since reaching $7.50 along with a number of other uranium stocks. The technical indicators are almost on the floor, which suggests that a buying opportunity could be getting closer.

JUL Chart:

URZ July Chart


Ideally we would like to buy when the stock price is closer to, or below its 200 DMA, a visit that does not happen to often with this stock. The stock is in a downtrend but it did trade above $5.00 in February so the current price of $4.97 (considering how much the underlying asset of uranium has risen) is a tantalising proposition.

Uranerz has around 34 million shares outstanding which puts the market capitalisation at $194 million. The news flow is good and frequent which is something we like as it reflects well on a pro-active management team. Doubling their Land Holdings in the Powder River Basin, Wyoming, for instance.

Last week was a better week for most uranium stocks but Uranerz lost almost 7%, maybe it has been overlooked and its turn is about to come. Nobody can forecast the future and we guess that is part of the challenge in this business, trying to get the timing right.

In conclusion we think that this stock could go a little further down and once again we will wait and watch for a suitable entry point.
Article originally appeared on Uranium Stocks (http://www.uranium-stocks.net/).
See website for complete article licensing information.