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« Uranium: The Pendulum Swings! | Main | Mega Uranium Limited: Cash Position »
Tuesday
Aug212007

Uranium-stocks.net: Portfolio Update 21 August 2007


The global market sell off took its toll on our portfolio of uranium stocks. It is a thin market so any sort of selling pressure hit home very hard. TradeTech’s spot price remains at $105/lb for U3O8 with deals being non-existent as all eyes are focused upon the recent auction results, which have yet to be made public.

We have took a battering but the loses are paper loses and only become real if we hit the sell button which we have not done. We do suffer from optimism so please bear that in mind.

Uranium Chart:

Uranium Chart 21 August 07

Below we list the uranium stocks that we have an interest in or are watching with the view to making a future investment. We are also looking for the occasional trading opportunity as we are small enough and should be nimble enough to move in and out of a particular stock quickly. This is difficult for the big players who own big positions in their favourite uranium stocks as the thin liquidity of some stocks does not allow them to sell a large position at the push of a button. But that is no excuse for us, so going forward we will suggest from time to time one or two short term trading moves.

Cameco Corporation – Watch
Cameco was trading at $55.09 on TSE, but didn’t escape the sell off and is now trading at $39.25, problems continue so its not for us at the moment.

RPT Uranium Corp – Watch.
We bought RPT on the 19th February 2007 for $0.42 and sold it for $0.62 on the 13th June 2007 for a profit of 47.6% in 4 months. We still like this stock and so bought it back at around 50 cents, although RPT has dropped since then, we have been able to get it at a considerable discount and selling at 62 cents was a good move in hindsight. This is a small company with a market capitalisation of $24 million, currently trading at $0.34.

Uranium Participation Limited – Hold
U is currently trading at $9.98 Canadian and is down 16% since we bought at $11.97 on 21 November 2006. We will continue to hold, as it offers direct exposure to uranium without the risks inherent in mining. This stock is at a discount at the moment compared with its NAV.

Strateco Resources Inc – Watch
RSC is currently trading at $1.65 having suffered a severe sell off. This presented a cheaper entry level that we had hoped for and so we bought a small position at $2.30. The stock appears to be forming a bottom, keep an eye.

Fronteer Developments Group – Buy
Fronteer is currently trading at US$8.40. Our original purchase was made on the 15 July 2006 at around the $4.70 level so that is showing a gain of 78%. We are still quietly confident that it can double in value in 12 months or less. We may transfer FRG to our gold portfolio as it is more of a gold play now than a uranium play.

Crosshair Exploration and Mining Corporation– Neutral.
Having taken a small profit we continue to watch CXX. The stock is trading at $1.39 Canadian and we are still neutral at the moment, as it is still heading south. Listing on the AMEX should give this stock more exposure but since hitting a high of $4.0 in December it has been down hill all the way since then. Not for us at the moment. See recent article on CXX.

Laramide Resources Limited – Buy
Having recently been a star performer this stock has now dropped to $5.76. We bought at $5.78 on the 28 July 2006 so we are about even with it at the moment. 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. That said we still expect LAM to bounce back from these levels.

Energy Metals Corporation – Watch
EMC is now trading at $13.00 down from $17.71 having suffered in the recent sell off. We first wrote about it in September when it was trading around $5.70 but failed to land it then – that’s life.

Eagle Plains Resources – Buy
This stock is mainly featured on our silver website, but it does have some uranium interests. EPL was trading at $0.89 in the last update and is currently trading at $0.79, for a nice gain since we bought it at $0.53. We still hold the belief that EPL will be issuing good news on the results front this year so we will hold on tight to this industries ’Project generator’

Mega Uranium Limited – Buy
We bought MEGA at around $4.0 on 27 July 2006. MGA is now trading at $3.49 for a loss of 12%. MGA has taken a battering during the recent sell off, but the recovery has commenced. They have a very good cash position so we would expect them to be in acquisitive mood and pick up a few bargains before prices rise. Please see our recent post on Mega Uranium.

Rodinia Minerals Inc. – Watch
RM was $0.80 when we first wrote about it on 15 August 2006 and is currently trading at $0.60 so a fairly volatile stock. The volume is still tiny as you might expect from a company with a market capitalisation of $13.6 million.

Santoy Resources Limited – Sold, but now on Watch List
Santoy was doing very well up from $0.81 that we paid on 27 December 2006 to trade at $1.53 at the time of the last update. However having decided to sell three of its projects to Mega for 400,000 common shares in Mega we decided to sell. We sold on 23 April 2007 at $1.39 for a profit of 70% in 4 months. Santoy now trades at $0.54 having suffered a severe decline. We will need to review this one as this would appear to be a cheap re-entry point.

Khan Resources Ltd - Buy
We bought Khan on the 5th March at $3.63 and it is now trading at $1.33 for a loss of 63%. Khan got off to a great start but has also suffered in the sell off. Just to make matters worse the Mongolian government rejected one of their mining lisceness. So, in anticipation of Khans management team finding a resolution to this problem we decided to buy again. (See Khan Resources: A speculative buy) This is a risky strategy but if they can resolve this problem then the stock could recover very quickly indeed.

Aurora Energy Resources
- Buy
We bought Aurora on the 5th March 2007 at $14.17 and it is now trading at $11.18 for a loss of 21% as we write, another victim of the market shake out. Having rubbed noses with $20 it now looks to be severely oversold.

Strathmore Mineral Corporation - Buy
We bought STM on the 14th April 2007 at $4.96 and it is currently trading at $2.28 for a loss of 54% as we write. We think the stock will do better when they spin off the non-core assets into Fission Energy.

Ur-Energy - Buy
We bought Ur-Energy on the 23rd April 2007 at $4.75 and it is presently trading at $2.78 for a loss of 41% as we write. Pretty much the same story here as for the the other uranium stocks.

UraMin Incorporated – Subject to a take over bid by AREVA
We bought UraMin on the 15th May 2007 at $6.72 and sold it for $8.36 on the 22nd June 2007 for a gain of 24.4% in 6 weeks.

Uranium:
We are sticking with our target prediction of $200.00 per pound for uranium despite the recent drop in price. Don’t be put off if we haven’t mentioned your favourite stock we do get it wrong now and again as evidenced reading our updates we are having to take it on the chin at the moment.

Please do get involved and add your comments to any of our articles whether you agree with us or not as this will add balance to what we say and be of benefit to everyone. No, you can’t use naughty words.

Please accept our apologies if you were unfortunate enough to visit the site when unwanted Spam is present we have now installed Spam protection so it will become less and less every day.
Please feel free if you haven’t joined to sign up to the forum and get involved with some of the debates. If there is a subject or uranium stock that you want to discuss then please start a new thread and we will follow with our comments.

Many thanks to all of you who have signed up for our Uranium Stocks Newsletter; we hope that you are enjoying it. We now have 3218 subscribers up from 2669 subscribers last month, which include a number of stockbrokers, banks and financial institutions, uranium company CEO’s, etc.

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. There have also received a number of requests to cover individual uranium stocks or unique geographical areas, which we will try and get to in the weeks ahead.

Have a better week.

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Reader Comments (9)

STM - Haven't they already spun off their non-core assets into Fission? It's already trading on the venture, FIS.V. Any thought on this spin off?

August 21, 2007 | Unregistered Commentertechdude

FIS has made a disappointing start on the venture Exchange we need to review this situation and will shortly.

August 21, 2007 | Unregistered CommenterUranium Stocks

We received our Fission from STM on August 10. Will be interested in hearing U-Stocks comments.

Khan is too risky for me. Mongolia is NOT looking good.

WNP, Western Prospector, announced Friday that the Mongolian goverment might be revoking many of their uranium exploration licenses. Trading was halted.

The story was affirmed, WNP resumed trading today and is down 62% so far.

Kahn is down 18% so far.

U-Stocks probably purchased before this news?

August 21, 2007 | Unregistered CommenterBytes

I'm curious why you don't have larger uranium stocks on your website? it seems every stock is under $10 a share which are speculative stocks in my opinion. USU is a great American uranium bet as it focuses on the enrichment process rather than mining. I think many investors wish to enter the uranium market but are deterred by the small sizes of the uranium companies.

August 22, 2007 | Unregistered CommenterJon

We were into Cameco at one time but we concluded that it was not a good investment. However, we think that you are correct and we should cover the bigger companies whether we invest in them or not.

In the past we have taken the view that the large companies have usually been researched by a zillion researchers and that we would not be able to add value to what was already out there.

Please feel free to tell us, which of the larger uranium's you like and why you like them.

August 22, 2007 | Unregistered CommenterUranium Stocks

What is your opinion on Uranium One?
Will it realise plans to become the biggest player?

August 22, 2007 | Unregistered CommenterLen Fore

FIS has popped up in our account - must have missed it with all that has been happening!

August 22, 2007 | Unregistered CommenterUranium Stocks

Hi there. This is my first post and I'd like to ask about Forsys (TSX- FSY). They are getting ready to commission a mine in Namibia and I was wondering about your thoughts. Geez, in the last two days it's up 20%.
regards, daveydog

August 22, 2007 | Unregistered Commenterdaveydog

Hi,

We are still interested in your current take on Uranium One (TSX-UUU since Monday)

Thanks,

G

August 23, 2007 | Unregistered CommenterGene

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