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« Uranium: Two new reactors for Texas? | Main | Tasmania: Now it is legally possible to mine uranium! »
Monday
Sep242007

Uranium-stocks.net: Portfolio Update 21 September 2007

Uranium Chart:

Uranium Chart 22sep07


Having been battered by both a market sell off and a U-turn in the spot price of uranium the bottom fishers have arrived and uranium stock prices are recovering mostly on increased volume.

The spot price is languishing at around $85/lb down from $105/lb last month. As we have written many times this is a thin market and the lack of trades sometimes produces a spot price based on estimates rather than hard facts. Even so at 85/lb the quality uranium miners will do very well so we need to stay calm and rational when buying stocks. As always keep an eye on the long-term indicator, as it remains virtually unaffected by the day-to-day hysteria found in the media.

Our portfolio was hit hard; it was an eye watering punch on the nose to glance down the investment account and see the erosion of profits. However the loses are paper loses and only become real if we hit the sell button which we have not done. Now since the last update many of the stocks have started to recover and on increased volume to boast! Its not a time to celebrate but if you have the cash and the nerve it is a time to gently accumulate some more of your favourite uranium stocks. Be warned though, the team here can find an upside to most things.

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 as we did in our portfolio of silver stocks last month. 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 as we did recently with Khan Resources.

Cameco Corporation – Watch
Cameco was trading at $55.09 on TSE, but didn’t escape the sell off and dropped to $39.25 last month before climbing back to close at $43.93 on Friday.

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 to $0.27, which is disappointing. This is a small company with a market capitalisation of $24 million.

Uranium Participation Limited – Buy
U is currently trading at $10.99 Canadian and is down $1.00 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.

Strateco Resources Inc – Buy
we made a small investment in RSC at $2.30 so we are pleased to see it close on Friday at $2.52 for a small gain. The stock appears to have formed a bottom and is on the road to recovery keep an eye.

Fronteer Developments Group – Hold
Fronteer is currently trading at US$10.25. Our original purchase was made on the 15 July 2006 at around the $4.70 level so that is a gain of 118%. We are still quietly confident that it can double in value in 12 months or less. FRG owns the lion’s share of Aurora Energy Resources making it a gold/uranium play.

Crosshair Exploration and Mining Corporation– Neutral.
Having taken a small profit we continue to watch CXX. The stock was trading at $1.39 last month and closed on Friday at $1.73. CXX gained 19.31% on Friday on increased turnover of 622,000 shares. Listing on the AMEX as CXZ provides this stock with exposure to the American stock market.

Laramide Resources Limited – Buy
This stock was $5.76 last month but has since rallied to close at $7.36 on Friday. We bought at $5.78 on the 28 July 2006 so we are pleased to see this recovery. 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.


Energy Metals Corporation – Now part of Uranium One

Eagle Plains Resources – Buy
This stock is mainly featured on our silver website, but it does have some uranium interests. EPL was trading at $0.79 in the last update and is currently trading at $0.76, 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 industry's ’Project generator’

Mega Uranium Limited – Buy
We bought MEGA at around $4.0 on 27 July 2006. MGA is now trading at $4.01 so its back to evens. 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.

Rodinia Minerals Inc. – Watch
RM was $0.80 when we first wrote about it on 15 August 2006 and is currently trading at $0.75 up from last months $0.60 so a fairly volatile stock. The volume is still tiny although turnover hit 285,000 on Friday resulting in a gain of 15.38%. It is a small company with a market capitalisation of $13.6 million.

Santoy Resources Limited – Watch
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 $0.72 up from $0.54 last month. This stock is not for us at the moment but don’t let us put you off it.

Khan Resources Ltd - Buy
We bought Khan on the 5th March at $3.63 and it dropped to $1.33 due to licensing issues with the Mongolian regulators. So, in anticipation of Khans management team finding a resolution to this problem we decided to buy again. (See Khan Resources: A speculative buy) the stock rallied and we took a profit of 15% in a matter of days before the stock fell back. Khan closed on Friday at $2.38 so the recovery appears to be in place. However we do need confirmation that the outstanding issues have been resolved. Also note that LAM took advantage of this turbulence and bought 5.6 million shares in Khan, a smart move in our opinion.

Aurora Energy Resources - Buy
We bought Aurora on the 5th March 2007 at $14.17 and last month it was down to $11.18, however it is now trading at $12.68 again showing signs of a come back.

Strathmore Mineral Corporation - Buy
We bought STM on the 14th April 2007 at $4.96 and it is currently trading at $2.82, up 23% from last month when it was $2.28, but down overall about 43%.

Ur-Energy - Buy
We bought Ur-Energy on the 23rd April 2007 at $4.75 and last month it was down to $2.78 however it is presently trading at $3.13 which eases the pain a little. We also gave a second buy signal on the 24th August 2007 when we acquired a more stock at $3.03.

UraMin Incorporated – gone to that big AREVA in the sky!
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. (Niger Uranium is a possible replacement!)

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.

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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 3364 subscribers up from 3218 subscribers last month and approximately 20,000 readers per week which include a number of stockbrokers, banks and financial institutions, uranium company CEO’s, etc.

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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.

Chin up! We are on the mend.








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Reader Comments (18)

Any thoughts on why RPT hasn't joined in the recent run up in other uranium stocks? Thanks.

September 24, 2007 | Unregistered Commentertechdude

Thanks for the encouraging words. Keep it up please.
/CK

September 25, 2007 | Unregistered Commenterchristian k

Please read my view on RPT dated August 16 2007
It is point 7.
Till now it plays the script perfect.
http://www.uranium-stocks.net/rpt-uranium-corp-buy/#comments

September 25, 2007 | Unregistered CommenterMyKel

Hey

any thoughts on Uranium One?

thanks

Pogman

September 25, 2007 | Unregistered Commenterpogman

Why will my previous comment not be placed here?
Is there some censure on this blog?
I had an answer posted on the RPT lag...

September 26, 2007 | Unregistered CommenterMyKel

Mykel,

As far as we can ascertain we have published all of your comments. If we have missed one then we apologise. If you can send the comment on RPT again we will publish it.

If you look at the comments on RPT, number 2 says, “Rampart is out of business” we didn’t sensor that did we?

September 26, 2007 | Unregistered CommenterUranium Stocks

Everything is placed right now.
Now is comment number 3 visible.
Thanks a lot.

September 26, 2007 | Unregistered CommenterMyKel

RPT has opened well up 9.8%

This peice of recent news may have helped:

Dr. Hikmet Akin, president of RPT Uranium Corp. (TSX VENTURE:RPT) is pleased to announce that the company has signed a contract to drill a minimum of 2,250 metres on its Richards Lake uranium property near the northern edge of the Athabasca basin in Saskatchewan. The drill is expected to mobilize to the property in the first week of October.

September 26, 2007 | Unregistered CommenterUranium Stocks

Mykel,

Did your short work out and are you now long?

September 26, 2007 | Unregistered CommenterUranium Stocks

I Reversed position today. Maybe it is to early to go long, but I don't dare to be short on RPT anymore. Thx for the attention.
Good luck to all other longers... Hope it is the right decision. Let's go to the CAD $30 :-)

September 26, 2007 | Unregistered CommenterMyKel

Another nice start for RPT up 11%!

September 27, 2007 | Unregistered CommenterUranium Stocks

How about getting into Pinetree Capital, it has broad exposure to a wide range of uranium holdings and is at bargin prices from it's high's. It was heavily sold when the crunch came but actually had no exposure to the subprime market as far as I know, even though it is in the venture capital business.

September 28, 2007 | Unregistered CommenterColin W

Just what I was afraid off: I went too soon long on RPT.
Lesson to everyone: listen always to yourself. There no blog in the world which speaks the truth...

October 1, 2007 | Unregistered CommenterMyKel

testing

October 1, 2007 | Unregistered CommenterBytes

I agree with Colin! Pinetree is very undervalued, and a great 'fund' of uranium, precious metal and oil/gas stocks that are small enough for 'possible' significant appreciation.
I emailed them in August, when their share price was $4 (-75%) and wasn't recovering as quickly as others, to ask about their subprime exposure. They said they don't have cash, it's all invested in their companies. I suggested they should issue a statement anyway, to relieve investor's fears. They didn't.
I started buying PNP in '05 and continue to add. I bought more in August and September.
- Gwen

October 1, 2007 | Unregistered CommenterBytes

I am wary of PNP (Pinetree), as the stock fell farther than most(as stated above, about -75%) and it had a sudden reversal, shooting up to $6.74 before falling back some, then heading up again. All this action is coming on the heels of a report about insider trading by Sheldon Inwentash (president of PNP), and is especially discomforting when the stock WENT UP even though it was de-listed from the S&P/TSX Index in September. There was also news that PNP was planning to buy back 4.5 million shares of its stock.

So, here is my humble opinion: PNP gets de-listed from the index and the stock price goes up? And the company is buying back it's own shares? And the share price is going up? Sounds suspicious. The Net Asset Value is currently $4.97.
I am wary of buying into this when there are other more solid companies available (UUU, PDN, AXU, FRG, DML, LAM). Not to say you can't make some speculative money on it, tho.

Another eye-opener for those that care: MGA is controlled by the same Sheldon Inwentash. And it moves almost in tandem with PNP. Just my observation, mind you.

October 1, 2007 | Unregistered Commenterstoneygulch

Re: PNP
Appreciate your input stoneygulch! Refreshing to get different viewpoints. Yes, Intewash controls both. I had always thought that was interesting.
Could you possibly point me to the delisting article? I did not know and am having trouble locating it.
The stock buyback seems to be what several companies are doing because they believe their stocks are now undervalued.
But I like your PNP analysis, looking at the whole picture.
-Gwen

October 2, 2007 | Unregistered CommenterBytes

Gwen: The de-listing article was printed in the Globe & Mail back in early Sept., but you can view the fact of its de-listing by using Google to search for S&P/TSX Index. It was delisted from this index on Monday, Sept. 24th, 2007.

You are probably aware that this delisting means that large funds that track the stocks in the S&P/TSX Index listing will not hold a stock that is not in the index; this is why I thought it was strange that PNP went up in price. By all accounts, the large funds should have sold off their holdings, which would have been sizable, and this should have caused a breakdown in the stock price. But if PNP is buying back its stock in measured increments, it is possible that could boost the price, especially when buying 4.5 million shares over a short period. But again, that is my opinion and I have come to the conclusion that there are events and large players that can move the market that the average joe can't possibly calculate or imagine.
Bob G.

October 2, 2007 | Unregistered Commenterstoneygulch

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