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« Uranium Stocks: Monopoly Anyone? | Main | Australia’s Uranium Policy is tough on India »
Jan212008 Portfolio Update 21 January 2008

We are at a critical junction as many uranium stocks prepare to test the lows made in August 2007. Some uranium stocks have already broken this support but we are waiting to see if other stocks follow suit. Therefore the majority of our stocks are marked “Hold” as we wait to see how events unfold. The markets in general have suffered a sell off so far this year which has contributed to the sell off in uranium stocks although the severity of the sell off in this sector is difficult to understand.

Going forward we anticipate more difficulties in the financial markets with corresponding knock on effects for certain commodities. However it is difficult to see uranium stocks going much further down as they have already suffered more than most and there will come a point when they represent too much of a bargain to be overlooked.

Cameco Corporation – Watch
Cameco was trading at $35.30 on the TSE recently and therefore this stock has fallen back to its August low. We are waiting to see if Cameco can hold this level, however in the long term we this the troubles at Cigar Lake holding this stock back considerably.

RPT Uranium Corporation – 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, however RPT now languishes at $0.19, which is disappointing but not unlike many other junior uranium stocks, which have also been taking a battering.

Uranium Participation Limited – Hold
U is trading at C$10.10 which is roughly where it was at the height of the credit crunch in the summer of 2007. We bought at $11.97 on 21 November 2006 so U is now showing a small paper loss but we will continue to hold, as it offers direct exposure to uranium without the risks inherent in mining.

Strateco Resources Incorporated – Hold
We made a small investment in RSC at $2.30 so are pleased to see it trading at $2.87, totally defying the downturn in the rest of the uranium industry and we are in profit by about 24%

Fronteer Developments Group - Hold
Fronteer has been transferred to our gold investment account as we now consider it to be more of a gold play than a uranium play even though it still owns the lions share of Aurora Energy Resources, which we track here.

Crosshair Exploration and Mining Corporation – Neutral.
Having taken a small profit we continue to watch CXX. The stock is trading at about $1.76 and has performed better in the last couple of months than other uranium stocks.

Laramide Resources Limited – Hold
This stock is trading for about $4.22 and we bought at $5.78 on the 28 July 2006 so we are hoping Laramide will resume its march upwards soon. 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.

Mega Uranium Limited – Hold
We bought MEGA at around $4.0 on 27 July 2006. MGA is now trading at $2.25 so we are once again back in negative territory. MGA has a very good cash position and is well managed so we expect to see it trading a lot higher in the near future and it is worth keeping in mind that stocks such as Mega are very volatile and so have the potential to move upwards again very quickly.

Rodinia Minerals Inc. – We have decided to remove this stock from our watch list for the moment to concentrate on other uranium stocks. We wish the company the best of luck in the future.

Santoy Resources Limited – Watch
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 $0.40. This stock is not for us at the moment as they now have limited uranium exposure.

Khan Resources Ltd - Hold
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 $1.28 and appears to be back to the same price that the company floated on the stock market. However we do need confirmation, as does the marketplace, that the outstanding license issues in Mongolia have been resolved. Also note that Laramide Resources took advantage of this turbulence and bought 5.6 million shares in Khan, a good investment in our opinion.

Aurora Energy Resources - Hold
We bought Aurora on the 5th March 2007 at $14.17 and it is now trading at $10.77 much to our disappointment, but the company still does have a great project in the Central Mineral Belt and when uranium prices start ticking up again, so should Aurora.

Strathmore Mineral Corporation - Hold
We bought STM on the 14th April 2007 at $4.96 and it is currently trading at $1.95, which is a very disappointing performance indeed.. STM has been weak recently, which is disappointing to us, however we will hold, for now.

Ur-Energy - Hold
We bought Ur-Energy on the 23rd April 2007 at $4.75 and we also gave a second buy signal on the 24th August 2007 when we acquired more stock at $3.03. URE closed on Friday at $2.28, as the stock has taken a beating in the last 20 days or so. Ur-Energy had been making a good recovery so hopefully the recovery can get back on track for this stock.

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.

Lets hope for better week.

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Reader Comments (6)

what do you think about ditem, solex, eso uranium, forsys and xemplar?

January 21, 2008 | Unregistered Commentersurya

This is mass-media, mass-fear, and mass-psychology driven selling at it's worst, and the Uranium sector is getting absolutely creamed.

I can on all newsletter writers, column writers, blog posters and Uranium bulls to fly the screaming buy flag at these ridiculously low levels. Hopefully a perk up in the spot price, a well timed Fed speech, and a certain newsletter writer-driven rally can all hit simultaneously and create a much needed mini-rally here to bring some life back to the sector.

January 21, 2008 | Unregistered Commenterjgr

Forsys really took a beating today as did most resource stocks, but for a near term uranium producer I can't understand the negativity for this stock. The cost of production may be around $40 a pound but with the long term price of $95 I would think that it now represents a bargain at just over $2.00

January 21, 2008 | Unregistered Commenterdaveydog

can I be cheeky and ask you when you think the Uraniums will bottom out ?

I am quite heavily invested and am holding on since the fundamentals are compelling, particularly now that biofuels are not working out!!

Kind regards, Stuart.

January 22, 2008 | Unregistered CommenterStuart


You can read our latest thoughts

Thanks alot!

January 22, 2008 | Unregistered CommenterUranium Stocks

I have a very large holding in the above company ,i read the uranium stock letter and got your email from there .

I'm not sure weather to add more to URA at .4p or not .They have a joint venture with WMT its 50/50 and WMT are financing the project with URA holding the licences ,the land is the size of Switzerland .They have been producing some outstanding HIGH grade U results last year and have announced a aggressive policy to see how much is there by end of this year (pounds in the ground) .

The only problem with URA is as follows they said last year that they were going to list on the tsx market to get more exposure this has not happened .They are currently listed on the AIM market but in the wrong category its in the Financial rather than the Mining Sector so no exposure .The directors seem to be siting on there backsides rather than doing some PR for the company there has been not one shred of PR from them .

Any advise or recommendations would be greatly appreciated on penny U companies

many thanks kind regards

January 23, 2008 | Unregistered CommenterAnonymous

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