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« Olympic Dam Extension: When? | Main | Uranium: The Pendulum Swings! »

Ur-Energy Incorporated: BUY

URE Logo
The uranium sector has suffered a serious hammering during the global market sell off; however, many of the uranium stocks are now on the road to recovery.

We have just completed a review of the charts for many uranium mining stocks and the patterns although not identical are fairly similar. The story is one of a downtrend being formed by a stock and then the sell off acting as a turbo charger in accelerating this sector into massively oversold territory. Gut wrenching indeed but it is not a loss until you hit the sell button, which we have not done. To see this recovery commence gives us a modicum of comfort.

We have chosen one stock to buy today but there are many others that are in same boat, so if you have a favourite uranium stock or stocks now would be a good time to add a few more to your portfolio. However expect volatility and look beyond the next few months for significantly higher prices.

The stock that we are going to purchase today is Ur-Energy Corporation (URE)

Ur-Energy Chart:

Ur Energy Chart 24 August 07

From the chart above we can see that the recovery has commenced as bargain hunters accumulate this stock. The technical indicators, RSI, MACD and the Stockastics have all moved into positive territory.

The bottom fishing will continue and you will see different individual uranium stocks putting on large one day gains as stock pickers give their approval to go back into the water for their particular favourite. This has already started with URE and the announcement yesterday that the company had a strong cash position, C$88.7 million, had a positive effect with the stock jumping 5.96%.

Bill Boberg, President and Chief Executive Officer, said yesterday,

"The basic fundamentals of the uranium market and of Ur-Energy remain unchanged. Medium and long-term uranium supply continues to be a problem. Given Ur-Energy's production schedule, low capital requirements, projected low cost of production and first-class technical team as well as a secure treasury sufficient to take us well into production, Ur-Energy is uniquely well-positioned in today's market.

Interesting to note this some analyst’s comments yesterday sent to us by one of our readers:

In an analysis published Thursday, Canada's Haywood Securities predicted that, by year-end, the spot market for uranium could regain some of the ground it has lost since the metal reached a high of $136 in mid-June.

The BBC also a had a news item that appeared to have gone unnoticed: The West African state of Guinea is the latest country in Africa to announce that it is seeking nuclear power. This is another country that we can add to the list of future consumers of uranium. Due to the shortage of electricity these students are studying in a car park.

African Students 24 aug 07

Today we purchased URE for $3.05.

Ur-Energy Incorporated trades on the Toronto Stock Exchange under the symbol URE.

Have a good one and many thanks indeed for all the alerts that you send us.

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Reader Comments (2)

I was quite surprised at how far some of the uranium stocks fell, and MGA and PNP seemed to fall the furthest and the fastest. But interestingly, Uranium One ( and Denison ( did not really drop that far. A concern is what was previously thought to be a good, solid company, Khan Resources ( I bought it the day it tumbled to $1.56 but it is struggling to stay even at that level. Anyone have any new news about KRI that I can look to the future with?
Bob G.

August 24, 2007 | Unregistered Commenterstoneygulch


We are have been in touch with Khan Resources and they told us that their Country Manager and their lawyers are working hard on it and that they will update the market place as soon as they have some information.

We are shareholders as you probably know and when the stock price tumbled we bought again. This might be a silly move but the time to buy is when there is blood in the streets, or so they tell me!

As soon as we get an update we will post it immediately.

Mega Uranium was up around 12% yesterday and PNP was up around 21%, so its not all bad news.

August 25, 2007 | Unregistered CommenterUranium Stocks

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