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« Denison and Crosshair Purchased! | Main | Happy Christmas and a Precious Metals New Year »
Thursday
Jan012009

Uranium Stocks Double in one month!

Uraniun Chart 02jan09


Uranium stocks showed some signs of life with a bounce back in December 2008 despite the spot price remaining at $53/lb. A quick look at the list below indicates the percentage gains achieved by some of the household names in this market sector.

Denison: $0.60 - $1.18, 96% gain
Laramide: $0.55 - $0.98, 78.18% gain
Mega: $0.42 - $0.77, 83.33% gain
Aurora: $0.90 - $1.80, 100% gain
Khan: $0.175 - $0.43, 145% gain
Crosshair: $0.09 - $0.19, 111.11% gain.

Even with these gains many uranium stocks are still way down from their highs but it is encouraging to see them head north in this manner. This could be a blip created by bargain hunters who with some trepidation are putting a toe outside of their nuclear bunkers to test the water. Then there is the possibility of a honeymoon period for President Obama whereby the stock markets are lifted in the hope that the change in leadership will be a positive one. Also in the news is the plight of those living in the Ukraine where Russia has just cut off the gas supply. The wider implications for Europeans depending on Russian gas supplies must be a cause for concern. However new nuclear power plants will not be built over night but this sort of threat of supply cuts should raise the question of more independence in the area of power generation and put the spot light back on nuclear energy.

Still it’s a good start to the New Year and long may it continue.

Got a comment – then fire it in!

Have a good one.

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Reader Comments (37)

Oh, come on! Uranium stocks are down around 99% (Crosshair, for one), go up a measly ten cents, and this is cause for celebration? Yeah, I know, "any port in a storm", but if you ever want to be taken seriously, you'll have to do better than this, guys. Happy 2009, just the same...

January 2, 2009 | Unregistered CommenterJoeBronx

Joe, We have all suffered through the bad news so its reasonable that we should report some good news when it makes a rare appearance. A number of investors are using this opportunity to make purchases.

If we ignored these moves we would be wrong to do so in some people's eyes, but we do take your point and wish you a very prosperous New Year.

January 2, 2009 | Unregistered CommenterUranium Stocks

What is driving up Denison stock? It has more than doubled in the past week.

January 2, 2009 | Unregistered Commentermilan stolarik

all the stocks WERE DIRT CHEAP and all the uran stocks that are covered and had been covered ON THIS WEBSITE ARE going up immensely cause the market is heading UP from its LOW! when a man as smart as buffett says to buy again-MEANING THE WHOLE MARKET IS CHEAP ON OCTOBER 18 2008- HE MEANT THE STOCKS IN THE MARKETS ARE REALLY LOW! COMPARED TO THEIR PREVIOUS HIGHS ! plus energy stocks are taking off right now -its the winter season-the time when energy stocks usually take off cause we are using more energy to heat everything-PLUS inventories of uranium were low and now the stock prices of the uran stocks taking off-LESS SUPPLY = HIGHER DEMAND = HIGHER STOCK PRICE ! isnt that right degraaf!

January 2, 2009 | Unregistered Commenterwil

Hey it's nice to see 300% return on Khan, and a double on Denison (aided in my case by in frustration buying at a fire sale price when the Canadian exchanges wouldn't allow me to buy on Canadian bourse forcing me to buy DNN in America at far less than currency differences would indicate. (That was odd that DNN was far lower than currency parity would indicate when the Canadians were buying in Canada while the shares were locked out to Americans) but let's face it, this is not a thunderstorm passing into the distance with receding thunder, this is a hurricane, and we're basking in the balmy center at the moment... In not too long a time, we shall be hit with the other side of the storm...the credit card bust, continued unraveling things that stink but are covered in plastic, more fraud... And then what? What if Dow drops to 6600 or 5500 or gasp! 4400? Maybe this is a time to actually sell into a dead cat bounce. (Look how many dead cat bounces there were in '29, or just pick a big recession...)

Why did this group go up? My thoughts: The world considered Khan (then selling at ~$0.15C to be subject to severe political threat, and so do I as the new party in power in Mongolia is hardly democratic and there are lots of comments that sound like this: "well, we (the state) found the mine (they did)so it should be ours." (my paraphrasing). And then, in rides the Samurai in shining armor (Marubeni Corp of Japan) with letter of intent in hand. So the world thinks, wow! Marubeni must know a something that we don't. Mongolia must be an ok place and so Khan triples.

The market sees the triple and Chicken Little cries: "The sky is rising..." And spill-over lifts everything else. What fundamental change has occurred?

To be fair, KRI's still a few pennies short of it's cash value, but IF the storm is a hurricane, and IF we get hit on the other side, will KRI fall, possibly to 10 cents? I think it quite possible.

As for Samurai Marubeni, do they care if Mongolia seizes the Dornod project? Well, maybe, a bit but in reality, the insider gets to buy the goods, and in the future (ten years out) it's "who" gets to buy, not "what is the price?" I'm not sure at all that Marubeni cares if KRI maintains ownership but you had best believe that we care. Worst case: Mongolia seizes Dornod. We lose. Marubeni still is first in line for the goods.

Buy into the rise? Sell half and diversify? Sell all, lock in 300% gain, and wait for (what I think is inevitable) the second or third bear market segment and buy shares back at possible 3:1.

Oh such hard choices!

Oh what fun!

January 3, 2009 | Unregistered CommenterSteve

the reasons I own dnn; the u.s. imports 80% of it's uranium, there are some 400 npp's in the proposal/drawingboard/construction stages [world-wide], and there is not another mines/milling/production company out there at this time. i'm also drinking the koolaid of uec and urg with an eye on production in 2009/10. glta...

January 4, 2009 | Unregistered Commenterrichard mruz

the group went up because THERE IS A SEVERE SHORTAGE OF URANIUM NOW ! thats why and because it is the winter season when these type of stocks -resource- usually go up-- and of course it helps that the market just came off its low...and is heading back up...it has nothing to do with just one company and the political situation in that companys locale where it is operating...you people want a good site for news on uranium stocks and the uranium situation in the world besides this one? go to u308.biz on the internet -- there is plenty of information - JUST ON URANIUM-unlike this site which occassionally you hear non uran information like the russians buying property which has nothing to do with uranium.....ha ...time is of the essence..there is little time and so much that you have to watch in order to become educated on what is really going on with urans gold silver etc...do yourself a favor .. spend what little time you have in this world that you spend on investing and spend it on relevent information that deals with the investment at hand-in this case uranium -instead of baseless information like the russians buying property and the theory of useless info you hear from types like degraaf....go to u308.biz and get yourself a copy of the stock traders almanac which is a calendar of the year which points out trends of previous years that usually occur in the years ahead--- note THE TREND IS YOUR FRIEND..by the way canadians .. it is always cheaper for us here in the usa to buy the american version of a canadian stock because of the extra trading fees associated with trading canadian stocks - 30 plus dollars fee to buy a canadian stock vs 7 dollars fee to buy a canadian stock that is listed on a usa exchange like denison unlike khan which is not .....and i had no problem buying or selling denison thru my scottrade site.. no broker fees no floor fees- just 7 dollars and i bought it myself without the aid and extra expense of a broker...watch the price of uran etfs nucl ,nlr ,pkn ,and watch what the price is in regards to 52 week high...when it starts getting close to 52 week high it might be a good time to sell and save money at next run later this year...note: first 5 trading days of the year usually show if the market will be a good or bad market...so far we have had a stellar run...with the situation in gaza expect gold stocks to be higher monday morning..after market change and percent on yahoo finace already show that aem,auy and gold -randgold - to be opening up higher...no thanks needed - i know this site is biased in many ways-- hopefully this info helps someone as it has helped me IMMENSELY....WIL

January 4, 2009 | Unregistered Commenterwil

Hmmm…. A “severe shortage now.” Ok, so this shortage has just manifested itself? Let’s see, most U stocks have dropped 60-95% over the past half year, and *poof* Khan triples… Perhaps you can tell us how this severe shortage all of a sudden popped up in the past few weeks? Did a few hundred of these new NPP’s come on line?
While you think that foreign information is useless, I suggest that you reconsider. And by the way Marubeni who I believe gave this group this particular kick is Japanese. Japan is a different country than Russia. Saki, not wodka….
Most of us here know already that a shortage looms out in the future and it’s nice to hear constructive thoughts and theories here. But I suggest that the old “Nimby” (Not in my back yard—the former “no nukes here” ) cry will change to Imby, meaning “In my back yard, please.” This translates to regions and close geographical associations and effects stock. Nearby countries often have closer economic ties. Thus Japan and China will continue to link to Australia sources of Uranium just as we will try to link to Canada. These regional/national relationships are extremely important to watch. Recently I remember reading that one of the Australian majors cut a forward deal with China. Uh oh… ‘ey mate…we thought you were our sort of chap, not China’s!
And, by the way, one thing that I failed to mention re Denison is that Denison has activities in Mongolia. Again I believe that this market was kicked up by the Marubeni letter of intent with Khan. The world perceives if one of the world’s largest corporations is moving towards Mongolia the political risk is less, thus the opportunity more.
Your suggestion for U3O8.biz is a good one, it’s a great site. So too is Sedar.com which is, I think the elemental site for Canadian stock. So is the site that shows insider buys/sells. Yet neither of these sites look to some issues that are so important to us who search for deals. Those issues are management (there is a great site though I can’t remember the name) to look up the “people.” Politics is a huge issue. Think it’s not? Ask someone who owns Crystallex or Hecla stock… oops, mine gone bye-bye thanks to Chavez. Sure, DRC (Congo), Mongolia, and Venezuela have political risks… but you might say “well, here in America, we have none of that,” well, if you do think again. Ask someone at Uranium Resources (URRE) about politics. You’ll find that Navajos are vehemently against uranium, and note, I do not say uranium mining. They will aggressively try to stop even the transport of ore across their lands. Though they cannot do this legally, they can do it with court orders and hearing. URRE’s Church Rock project has been held up for almost a decade do to Navajo protest.
As far as “it’s always cheaper for us to buy here in America…”
This is not usually the case and it is wise for us to know this. Rarely you are correct, but usually the real answer is “six of one,” or a “half dozen of the other.” Generally they are priced the same.
The following prices are real, check them out if you think they are made up.
Look at Friday’s close: DNN traded at US $1.70 whereas it’s Canadian version DML traded at $2.09C (Canadian). Now look at exchange parity at 5PM. $1000US purchased $1,220 Canadian dollars. (It can cost the average person ½ to 1% to exchange currency but I’m ignoring this for now). 1.70/2.09 = 0.81. 1000/1220 = 0.82. So in fact the difference adjusted for currency parity was about the same.
Now look at Wednesday’s close: DNN traded at $1.18US while DML traded at $1.16C. We know that currency parity on Wednesday close is about the same as it was on Friday’s close of $1/$1.22C or 0.08. Therefore if you were able to do two trades at close on Wednesday you would realize that your $1000US would buy you 847.5 shares on the American bourse. But if you changed your currency into Canadian you’d now have (I’ve included a 1% currency exchange fee) $1000 x 1.22 = $1220 - $12.20 (the 1% fee) = $1207C, with that $1207C with the order placed on the Canadian bourse you get 1051 shares.
So you see, at close on Wednesday, your statement is terribly wrong. You would have gotten 848 shares and I would have gotten 1051 shares of the same stock. Are you happy getting 203 shares less for your $1000 US dollars? It gets worse too. Let’s say Denison goes to $10US a share (we all know that is inevitable don’t we?) Well, your shares are worth $8480. Nice deal! I sell my 1051 shares and get $12.20 Canadian if currency parity is still $1/1.22, exchange my Loonies (Canadian dollars) to US dollars, pay the 1% fee and now I have $12,159US which is $3,679 more than you have for the same stock purchased at the same time on the same day. Rot row! (This gets even better for me as you’ll see later at **).
Now how about: “Your statement is terribly correct!”
On December 24th I went to buy some DML but the order was refused. It was refused because Denison had done some “flow-through financing,” and by Canadian bourse rules I as an American could not buy DNN for a period of time. I prefer to buy Canadian stocks in Canadian dollars at the moment for a reason I’ll explain later. Unable to buy in Canada I looked to DNN in America. Usually stocks trade at parity, but oddly, this was not the case. I was surprised to see DNN trading at significantly less than its Canadian brother when adjusted for currency parity. So I placed a “stink bid” that day. (A stink bid is a bid significantly lower than one would expect, in my case I set the limit order at $0.62US)
Well, luck was with me that day, (thank you Doug Casey of caseyresearch for teaching me about stink bids) for around 3:30 someone (maybe a fund) unloaded 140,000 shares. If you look back you will see that yahoo or most sites only show a low of 0.65 that day yet my trade was at 0.61. I don’t know why but I suspect that my bid was at the low end of low and too small to show. At any rate let’s look at what happened: My $1000US purchased 1639 shares. Had I purchased on the Canadian bourse, since shares at that time sold for $0.81C I would have gotten: $1000US=$1207C. $1207C/0.81C=1490 shares. In this instance I would have received 149 less shares had I purchased on the Canadian bourse. So you see, in this instance your statement is true.
Why did this occur? I suspect that the dumping of the 140,000 shares was a huge factor, though parity was in my favor earlier in the day. The lesson to be learned is: Generally adjusted for parity they are equal (except for trading fees). But opportunity exists for outliers to currency parity.
Going back to ** where I say my advantage even gets better: Months back $1US=$1C. As this crisis unfolded the dollar got stronger against the C$. It kissed $1/$1.30 three times over the past month or so. I decided to exchange my US$ for Canadian at $1.299. The third time it reached $1.306.
The trades listed above were at a rate of $1/$1.22C. By trading my $US for $C any trade done in Canada with my Canadian dollars now has a 6%+ factor. In this instance it was immaterial for the DNN trade. But for other, earlier trades before I was locked out of the Canadian bourse, I was up 6% and as I write this I’m up about 9% overall by virtue of the C$ strengthening against the US$.
You say that Canadian purchases are more expensive and for your broker that appears so. But for etrade a Canadian trade is $19.95 though it really is $16.36 because it is charged in Canadian dollars. Yes, you are right, they are more expensive and this can be a factor if you enjoy small lots.
Or you can open an account at Interactive Brokers, for there a trade might be $2, even in Canada. But beware, Interactive can be deadly for the inexperienced. For instance very low priced stocks (less than $.25) can be more expensive at Interactive than at etrade. Buy 60,000 shares of a Canadian stock at $0.005 and the fee at Interactive will be enormous because they add $0.005/share fees. Uh oh (though I think it might be capped at a max rate, still, that scares me). But buy 60,000 shares at 0.005 through etrade and it’s a simple $9.95 or $19.95 if Canadian.
If anyone has actually read this far……thank you! Hope this info makes you a few more peso someday.

January 4, 2009 | Unregistered CommenterSteve

Easier to read version:

Hmmm…. A “severe shortage now.” Ok, so this shortage has just manifested itself? Let’s see, most U stocks have dropped 60-95% over the past half year, and *poof* Khan triples… Perhaps you can tell us how this severe shortage all of a sudden popped up in the past few weeks? Did a few hundred of these new NPP’s come on line?

While you think that foreign information is useless, I suggest that you reconsider. And by the way Marubeni who I believe gave this group this particular kick is Japanese. Japan is a different country than Russia. Saki, not wodka….

Most of us here know already that a shortage looms out in the future and it’s nice to hear constructive thoughts and theories here. But I suggest that the old “Nimby” (Not in my back yard—the former “no nukes here” ) cry will change to Imby, meaning “In my back yard, please.” This translates to regions and close geographical associations and effects stock. Nearby countries often have closer economic ties. Thus Japan and China will continue to link to Australia sources of Uranium just as we will try to link to Canada. These regional/national relationships are extremely important to watch. Recently I remember reading that one of the Australian majors cut a forward deal with China. Uh oh… ‘ey mate…we thought you were our sort of chap, not China’s!

And, by the way, one thing that I failed to mention re Denison is that Denison has activities in Mongolia. Again I believe that this market was kicked up by the Marubeni letter of intent with Khan. The world perceives if one of the world’s largest corporations is moving towards Mongolia the political risk is less, thus the opportunity more.

Your suggestion for U3O8.biz is a good one, it’s a great site. So too is Sedar.com which is, I think the elemental site for Canadian stock. So is the site that shows insider buys/sells. Yet neither of these sites look to some issues that are so important to us who search for deals. Those issues are management (there is a great site though I can’t remember the name) to look up the “people.” Politics is a huge issue. Think it’s not? Ask someone who owns Crystallex or Hecla stock… oops, mine gone bye-bye thanks to Chavez. Sure, DRC (Congo), Mongolia, and Venezuela have political risks… but you might say “well, here in America, we have none of that,” well, if you do think again. Ask someone at Uranium Resources (URRE) about politics. You’ll find that Navajos are vehemently against uranium, and note, I do not say uranium mining. They will aggressively try to stop even the transport of ore across their lands. Though they cannot do this legally, they can do it with court orders and hearing. URRE’s Church Rock project has been held up for almost a decade do to Navajo protest.

As far as “it’s always cheaper for us to buy here in America…”

This is not usually the case and it is wise for us to know this. Rarely you are correct, but usually the real answer is “six of one,” or a “half dozen of the other.” Generally they are priced the same.

The following prices are real, check them out if you think they are made up.

Look at Friday’s close: DNN traded at US $1.70 whereas it’s Canadian version DML traded at $2.09C (Canadian). Now look at exchange parity at 5PM. $1000US purchased $1,220 Canadian dollars. (It can cost the average person ½ to 1% to exchange currency but I’m ignoring this for now). 1.70/2.09 = 0.81. 1000/1220 = 0.82. So in fact the difference adjusted for currency parity was about the same.

Now look at Wednesday’s close: DNN traded at $1.18US while DML traded at $1.16C. We know that currency parity on Wednesday close is about the same as it was on Friday’s close of $1/$1.22C or 0.08. Therefore if you were able to do two trades at close on Wednesday you would realize that your $1000US would buy you 847.5 shares on the American bourse. But if you changed your currency into Canadian you’d now have (I’ve included a 1% currency exchange fee) $1000 x 1.22 = $1220 - $12.20 (the% fee) = $1207C, with that $1207C with the order placed on the Canadian bourse you get 1051 shares.

So you see, at close on Wednesday, your statement is terribly wrong. You would have gotten 848 shares and I would have gotten 1051 shares of the same stock. Are you happy getting 203 shares less for your $1000 US dollars? It gets worse too. Let’s say Denison goes to $10US a share (we all know that is inevitable don’t we?) Well, your shares are worth $8480. Nice deal! I sell my 1051 shares and get $12.20 Canadian if currency parity is still $1/1.22, exchange my Loonies (Canadian dollars) to US dollars, pay the 1% fee and now I have $12,159US which is $3,679 more than you have for the same stock purchased at the same time on the same day. Rot row! (This gets even better for me as you’ll see later at **).

Now how about: “Your statement is terribly correct!”

On December 24th I went to buy some DML but the order was refused. It was refused because Denison had done some “flow-through financing,” and by Canadian bourse rules I as an American could not buy DNN for a period of time. I prefer to buy Canadian stocks in Canadian dollars at the moment for a reason I’ll explain later. Unable to buy in Canada I looked to DNN in America. Usually stocks trade at parity, but oddly, this was not the case. I was surprised to see DNN trading at significantly less than its Canadian brother when adjusted for currency parity. So I placed a “stink bid” that day. (A stink bid is a bid significantly lower than one would expect, in my case I set the limit order at $0.62US)

Well, luck was with me that day, (thank you Doug Casey of caseyresearch for teaching me about stink bids) for around 3:30 someone (maybe a fund) unloaded 140,000 shares. If you look back you will see that yahoo or most sites only show a low of 0.65 that day yet my trade was at 0.61. I don’t know why but I suspect that my bid was at the low end of low and too small to show. At any rate let’s look at what happened: My $1000US purchased 1639 shares. Had I purchased on the Canadian bourse, since shares at that time sold for $0.81C I would have gotten: $1000US=$1207C. $1207C/0.81C=1490 shares. In this instance I would have received 149 less shares had I purchased on the Canadian bourse. So you see, in this instance your statement is true.

Why did this occur? I suspect that the dumping of the 140,000 shares was a huge factor, though parity was in my favor earlier in the day. The lesson to be learned is: Generally adjusted for parity they are equal (except for trading fees). But opportunity exists for outliers to currency parity.

Going back to ** where I say my advantage even gets better: Months back $1US=$1C. As this crisis unfolded the dollar got stronger against the C$. It kissed $1/$1.30 three times over the past month or so. I decided to exchange my US$ for Canadian at $1.299. The third time it reached $1.306.

The trades listed above were at a rate of $1/$1.22C. By trading my $US for $C any trade done in Canada with my Canadian dollars now has a 6%+ factor. In this instance it was immaterial for the DNN trade. But for other, earlier trades before I was locked out of the Canadian bourse, I was up 6% and as I write this I’m up about 9% overall by virtue of the C$ strengthening against the US$.

You say that Canadian purchases are more expensive and for your broker that appears so. But for etrade a Canadian trade is $19.95 though it really is $16.36 because it is charged in Canadian dollars. Yes, you are right, they are more expensive and this can be a factor if you enjoy small lots.

Or you can open an account at Interactive Brokers, for there a trade might be $2, even in Canada. But beware, Interactive can be deadly for the inexperienced. For instance very low priced stocks (less than $.25) can be more expensive at Interactive than at etrade. Buy 60,000 shares of a Canadian stock at $0.005 and the fee at Interactive will be enormous because they add $0.005/share fees. Uh oh (though I think it might be capped at a max rate, still, that scares me). But buy 60,000 shares at 0.005 through etrade and it’s a simple $9.95 or $19.95 if Canadian.

If anyone has actually read this far……thank you! Hope this info makes you a few more peso someday.

January 4, 2009 | Unregistered CommenterSteve

in regards to low inventorie of uranium go read wall street journal and u308.com ..it came out in the news that uran inventory was low and the herd responded by buying huge amounts of stock... and the method you described to buy your stocks ... geez you and your stink bid and blah blah blah --you make it sound so complicated ...buy low and sell higher...thats what i do ...nothing complicated ..i watch the newspapers,i look at the 52 week lows ,i watch the market which is almost always lowest near the end of the year and then thats when the resource stocks usually take off..this year is a plus because the market got down really low.....also in regards to stock houses i use scottrade...if i buy canadian stocks on canadian exchanges i pay a floor fee and a broker fee..if i buy online no matter how many shares i buy of a stock that trades in the usa excluding pink sheets and over the counter bulletin board stocks --- ITS ONLY 7 DOLLARS...THATS IT...simple and effective ...ill have to read your message over about 3 times before i can even figure out what the hell you are talking about---- kinda sounds like degraaf making something that should be so simple so complicated...kinda like a bs newsletter writer/........wil

January 4, 2009 | Unregistered Commenterwil

read this......the MAIN REASON WHY KHAN WENT UP DRAMATICALLY IS BECAUSE MOSTLY ALL THE URANS WENT UP ...i understand about crystallex and govt taking over mining...even so...the main reason khan went up is because they all went up! --meaning the uraniums covered on this site as well as alot of other ones like ure and urre that i purchased also....they all went up ! they all went up because people read in the wall st journal,in your toronto newspapers,on u308.biz uran sites that INVENTORY IS AT A LOW AND THEY ALL ANNOUNCED IT AT NEARLY THE SAME TIME ! thats why! dont ask me questions how is it that uran inventories are low lol! how the hell should i know? ha..all that matters is that the powers that be - the newslinks- our sources for information have just said supplies are low! AND YOU KNOW WHAT? I DONT GIVE A DAMN IF THEY ARE REALLY LOW OR NOT ! BUT I DO KNOW IM GOING TO MAKE A BUCK OR TWO ON THIS NEWS! lol WIL

January 4, 2009 | Unregistered Commenterwil

If Uranium inventories are so low, why hasn't the price of uranium increased? I mean the comments here debate the supply/demand curve and stock pickers are speculating but the proof in the pudding (as they say) and where companies make money is when the actual price of the commodity rises. I haven't seen much movement ... have you?

January 6, 2009 | Unregistered Commentermax

Max, I don't think that the inventories are really "low." There's plenty to meet needs at the moment. But many look forward to the amount of reactors due to come on line in the future and then consider that the Russian agreement to downgrade nuclear weapon grade uranium to reactor grade is up for renewal in a few years. It seems unlikely that this particular program will continue.

That will take a chunk out of America's source of supply. So combine that with the nukes being built, or being permitted, add it all up and there is a shortage "down the line."

Interestingly too, the spot price of uranium has little to do with most of the sales of uranium. Agreed, it does seem odd, but from what I understand most users of fuel are contracted quite a bit out, and from what I hear much of that is at around $90/lb.

Another interesting point that perhaps someone else can answer is that a "working unit" of uranium which is processed has risen to $150/lb. But I don't understand the relationship.

Most of us simply see a shortage "about to be." As you point out logically if there was a shortage uranium would rise in price. But, by the same logic, one would expect round trip tickets to say, Asia to have dropped significantly. Yet they have not. The reason is that companies are locked into fuel agreements many of which run many months into the future. I think a wise nuclear company would be buying on the spot market, but credit is hard to come by.

But all is not quite so rosy in my view. For instance I just sold half my Khan which has risen a bit over 300%. So what I have left is "a free ride." The Dornod is a great project, but the politics make me edgy. A 300% increase in a week in my estimation is time to take some money off the table.

I've put it into moly stock. Now I gotta duck as wil is undoubtedly going to razz me...but heck, at least I put my money where my mouth is....

I'd like to hear from readers about lesser known companies... Anyone have any ideas?

January 6, 2009 | Unregistered Commentersteve

Hey, Steve. Regardless of "Wil"'s comments, it is refreshing to read an intelligent comment, especially on this site and with no spelling errors (hehe).
Although "Wil" seems to think he knows the answer to the question "Why did they all go up?" he is missing the rather important possibility that there is a certain newsletter editor who recommended his vast readership purchase "all" his recommended uranium stocks on Dec. 31st. But I have never seen this particular newsletter editor go back-to-back with recommendations, as he again issued his decree to buy on Jan.2nd. So, 2 days in a row (Jan. 01 markets were closed, "Wil"), we have an editor issuing a buy to his faithful.
I sold out, because when a whole sector advances 100% to 300%, there has to be a pull-back. Look at the technical charts, all were breaking out of the upper Bollinger Band, most were hitting 100% Stochastic, RSI was above 70; this has never been sustainable.

Another factor to consider is that those funds that sold out in December for tax-loss reasons may be buying back in; or, short-sellers got caught in an upward squeeze and had to cover. Look at the volumes, they are 3x greater than normal. And today, Jan.6th, we see the beginnings of the pull-back with 75% of the uranium stocks down about 10% on average, some more.

There may be legitimate news, such as a shortage of uranium, but there aren't many buyers, so, supply/demand hasn't changed much. And I just read an article that if you believe the news from the "be happy" crowd, you are risking getting sucked in.

I'm just glad to see some positve movement and make a buck. Who ever made 100% to 300% in a week? Unreal. Thanks for the money, there's plenty for everyone (if you can see it and want it).

January 7, 2009 | Unregistered CommenterBob G.

Couldn't have said it better myself, Bob; All these clowns "high-fiving" each other over a former $3.00 stock going from ten cents to twenty cents? Oooffaa! And you're right, they're all crashing (or ""pulling back" as one might philanthropically say) back to earth as I write. That newsletter writier you alluded to; It wasn't the pathologocal "Dim Signs", was it? Boy, what I wouldn't give to have "taken my hand off the tiller" about a year ago (:'-(

January 8, 2009 | Unregistered CommenterJoeBronx

what a bunch of nonsense i read here! jeez you fools who say my comments are unintelligent cause you see some spelling errors! what a bunch of goofs! in response to max's question as to why uranium price hasnt gone up ......duh it has! it had a low of 44 dollar a pound now its 52 dollars a pound! now im the uninteligent one! ha you goofs say why hasnt the price of uranium gone up when you dont even know the price currently and when the last low was ! FOOLS!! LOL! the move up was attributed largely to GROWING DEMAND from asia tigers: china and india ,alongside producer woes you goofs! this absence of new supply has done what an absence of new supply always does:drives up prices,so long as demand remains steady...citing rbc capital markets analysts adam schatzker and fraser phillips feel the uranium market should stay balance through 2017,at which point LEGIONS of planned reactors will start coming online..these will be hungry for MASSIVE amounts of uranium for startup and steady streams of nuclear uranium fuel thereafter ...this is expected to CREATE SEVERE SUPPLY DEFICITS you unintelligent beligerent fools! LISTEN UP YOU THINK YOU KNOW BETTER THAN ME FOOLS ....new supplies will be needed to fill the projected gap after 2017 ,but prices will have to be attractive for producers to bring new mines online..RBC says these will need to be ABOVE 80 DOLLARS A POUND IN ORDER FOR CAPITAL MARKETS TO PONY UP CASH TO FUND NEW PROJECTS...TODAYS FORECAST CALLS FOR AN AVERAGE SPOT PRICE OF 60 DOLLARS A POUND IN 2009 ,UP TO 75 IN 2011 AND TO 80 DOLLARS A POUND COME 2013...what actually happens will hinge to a large degree on the state of global financial markets through 2009 and beyond...and im guessing that with all the nuke plants going up and will be going up in china india ..... no im high fiving cause the best is yet to come you goofs! any of you fools not lose money when the market crashed? im willing to bet that not only did people lose money on urans but lost cash on thought to be great companies like enron ,fannie may freddie mac....the list goes on ...we all lost money you bs ers !

January 8, 2009 | Unregistered Commenterwil

uranium recent low was 44 dollars a pound last november now its 52 dollars a pound......go to u308.biz and read the REAL INFORMATION ..NOT FROM A NESLETTER OR FROM BOZOS LIKE JOEBRONX,BOB G WHO TALKS SHITE AND THINKS HE KNOWS INFORMATION THAT IS INTELLIGENT ,STEVE WHO HONESTLY KNOWS NOTHING ABOUT SUPPLY AND DEMAND OF URANIUM ......THE LIST GOES ON..IM WILLING THEY ARE ALL THE SAME PERSON PLAYING WITH THEMSELVES BEHIND A PILE OF U308 HAHAHA

January 8, 2009 | Unregistered Commenterwil

Here is one fool who ended the year up 38.54% at the end of December. No loss for me in '08. But then, I take profits when things move too fast, as I contemporaneously wrote on the day I sold half of my Khan shares. I could buy them back today and end up with 25% more shares than I sold but I'll wait a bit. Then too, though I don't know a lot about the short term supply and demand I did know that Khan has $0.57C in the bank for every share. Buying any stock below cash value seems like a worthy tactic to me. A 300% rise in a short time, in my book begs at least a partial sale.

Your comments are not unintelligent wil, they are rude and abusive, but I really doubt that bothers most of us. I agree, as you pointed out I had a rather myopic view of the effect of the connection with Khan and Marubeni. Good point. Indeed after reading that I looked about and you are correct. Sure the Marubeni effect may have pushed Khan further but it was an industry wide rise.

You sound experienced. I'd rather hear about your predictions in a constructive way if you care to do so. Though I did not lose a cent this year I have in past years and it was the experience that I had in '79-82 that has kept me in cash until September. I don't mind being a substantially richer clown of fool than I was last year... whee!

For the lot of you: How about some predictions and reports of buys and sells, and whys?

By the way, it'd be nice to have a pile of U308 to play behind...

So what shall I buy, and when, with the profit I pulled out of Khan? Who knows of an undervalued U stock...how about PUC or MM? Thoughts?

January 8, 2009 | Unregistered Commentersteve

rude and abrasive when others indirectly call my comments unintelligent and comment on some little spelling errors ? wtf they deserve it ....what the heck is bob g referring to when he says jan 01 markets were closed wil..then he babbles about newsletter...what the hell is he talking about?? and steve saying inventories arent low ...when you consider the amount of nuclear reactors that WILL be coming on line COMPARED to the amount of uranium we currently have mined and the amount that all the mines produce - we do have a shortage! ...now you want to know what to buy puc or mm .....what the hell are those? how about this STEVE buy an undervalued producer NOW at these prices - the pros like cameco ..low was 11 dollars something 11-21-08 now its 20.11 the high was 44.00 5/20/08 even with their mine flooded the pros are still buying and favoring cameco...you WANT more advice? ...denison mines another producer buy now low was .54 12/5/08 high was 9.83 now its 1.41 CHEAP!...allright? you want more ? uec upcoming producer cheap enough that when the uran market really starts moving up soon i believe will really fly...i bought uec for 48 cents 1-5-09 now its at 68 cents the low was .16 cents 12/10/08 2/29/08 it was 4.00 ,,,the mine permit has all ready been issued...being such a cheap stock relative to its previous high - when they announce production i believe it will hit an even higher high than previous year...you want another one? ok urre another producer low was 12/5/08 .36 cents high was 11.50 now its at .83 cents another bargain and i believe it will hit an even higher high if not this year then the next....urg i dont have but it is another upcoming producer ...all these are on major usa exchanges... all these have sites in the usa away from troubled areas like venezuela ..want another one?! urz....ive seen all these rise just about every year in the paper no matter if they are covered on this site or not! ...they trade on major us exchanges which ive seen MATTERS ALOT...they are not as volatile as little canadian stocks and they get more coverage / interest because more people are exposed to them when they look at the stock tables in major newspapers...plus FOR ME AND MANY OTHERS they dont require a broker to buy them- added broker fee or floor fee - just 7 dollars FOR usa traded stocks vs 30 dollars it cost to buy a canadian only stock--{ dont need your crazy comment on this steve } NOW .... i may be a little rude when someone says he read my post and then reads someones elses post and indirectly calls my post unintelligent and mentions a few misspellings of mine- well lets not play head games then -- i had some good points - i just gave you some...if someone steps on me ill step on them harder so dont then! abusive ha listen to the voice of reason ...many people in history had very good points and were mocked ...i dont consider this time any different...people just dont want to listen to reason...so steve i gave you advice you mention puc mm..... wtf? are those? where are the peoples advice on stock picks who posted above who are so knowledgeable ...the perfect spellers...thats about all they know how to do.... lets hear their stock picks ...i gave mine and when to buy...now...there will be volatility but for those willing to wait the rewards will be great...by the way im willing to bet at least a couple of the people above are the same person... more think they know so much playing headgames .... maybe trying to get some good stock picks because all they know is how to sound smart when they are really very dumb

January 8, 2009 | Unregistered Commenterwil

Okay, I agree with Steve that I should try and clarify my comments.
To Wil, you are abusive and rude, but what I see more than that is your ego is working overtime because you think I was talking about you regarding "intelligent comments and spelling errors". I wasn't talking specifically about you Wil, I was actually poking fun at the creators of this website, who are notorious for their spelling mistakes. And the unintelligent comments were referring to many people who post on this site. That may offend some people, but I have been on this site for many years now, since start-up, I think. And Wil, you are right about that website U3O8.biz. I have been following it for years and it is an excellent source of information, as it gets feeds from news services worldwide. But that still doesn't mean that you can shirk your responsibility to improve your approach to dealing with people in a way that is not offending them. You claim that I think I know a lot. I do. I have spent 2.5 years studying every bit of news about uranium I can get. I was doing about 3.5 hrs per day of research; I might know a lot about uranium since I was in it before Cameco split 2:1, then split 2:1 again. I was in it when Mega (MGA on TSX, MGAFF on pink sheets) was at 2.62 and went to $8, then split 2:1. I made a lot of money in those days. However, no one can predict the movements of the markets every time and be right . It's a crap shoot for most of us, but we keep trying. I learned to read and understand Technical Charts and info like the Stochastic, the RSI, Bollinger Bands, etc. All I can tell you is that stocks go up and they go down, regularly, and these technicals can help to show a picture of that.
To Joe Bronx, yes, that is the person who I am referring to. I also wish I had followed my intuition in July 2007 when my senses were telling me to sell ALL my uraniums. But I didn't listen, instead went on vacation to the hinterlands of Mexico and got whacked while I was away (do you remember the massive correction in mid-August,2007?).
I screwed up, but I'm fighting and clawing my way back. Wil, of course urans will go up, but it's two steps forward, one step back, over and over. Why buy and hold when you can sell higher and buy back the same stocks 2 weeks later at a lower price. I'm forced to do it, but I have been able to increase my number of shares substantially this way. For one example. Tournigan Energy (TVC on TSX). I have been buying it at around 16 cents and selling it at avg. 25 cents five times now. It is range-bound, as are most of the urans. So, I have boosted my holdings from 15,000 TVC to 52,000 with exactly the same money. And I just took a chance and sold all that 52,000 shares at avg. price of 28 cents, cuz I think it will drop back, and I have placed bids for 19.5 cents, 19 cents, 18.5 cents and 18 cents, 17.5 cents, and 16.5 cents. I don't think it is going to fall back as far this time (to 15 cents, I mean). It's lowest was 13.5 cents, briefly.

January 9, 2009 | Unregistered CommenterBob G.

Hey Wil;

What happened to that "SEVERE SHORTAGE OF URANIUM NOW", that caused the 98% down Uranium sector to rocket all the wayup to only 97% down last week? It's taken all of about six trading days for the entire sector to go right back in the toilet!

He, he, he...

PS: I hope I'm not the only one out here who noticed this, by the way...

January 12, 2009 | Unregistered CommenterJoeBronx

Nice post Bog G. It's nice to see someone put their money where there mouth is.

I just wish that Joe's statement was true, as I'd love to buy Khan back at 0.15 but it's only dropped from 0.53 to 0.43. Strange to be rooting for a Dow of 4400-6600, but if that happens, as I think it will, I'm a'gonna be dippin' into that toilet!

January 13, 2009 | Unregistered CommenterSteve

There's too much news about uranium, right now. So many firms and analysts are talking it up and recommending it to their followers. For instance, Canaccord Capital has been touting uranium as the next best thing to gold for this first half of '09. They are pushing Denison (DML.TSX), UUU, UEX (I like that one, huge potential). Take a look at Laramide, went up 400% in the recent updraft, and is taking it's time about falling back. And Mega and Pinetree have the same CEO, Inwentash, and he is touting them in news reports. Mega (MGS.tsx) has a nice property in Australia, Lake Maitland, that has shallow (less than one metre) uranium. Politics are working in their favour in W.Aust.
But the point of this article is that the technicals are indicating that the stocks are not going to pull back as much this time. Today, Jan. 12th, we saw some of them get down to great buying ranges (BAY.tsx) and I expect this week will see the best buys for awhile (no guarantees). We have 2 events that are going to happen: Dim Signs is going to issue his annual newsletter forecast for 2009, and Obama is sworn into office Jan.20th. That in itself may be huge, finally dumping Bush might get people really excited and cause a nice updraft for a month or so.
Anyways, it's Bob G., Steve, not Bog G.
As Wil is quiet these days, I thought it would be appropriate to ask him to provide us with one of his recent buys/sells so we can see how he operates.
And I want to clarify one thing: the Spot Market in uranium plays a very small part in the total volume of uranium being sold; it is the long-term price that producers deal with and that is currently at $70/lb, down from $90/lb. It has been holding steady at $70 for almost 5 months now.
Good trading, boys, now let's get out there and have some fun and make some money.

January 13, 2009 | Unregistered CommenterBob G.

Here's a question. What's the best brokerage for buying weenie (

January 13, 2009 | Unregistered Commentersteve

to answer all your crazy replies-- this market will and is very volatile- once this starts to settle all these prices you see for these uran stocks will be very cheap indeed...youre missing the picture -- how the hell do you guys who say youve made money in the market not understand volatility especially in these market conditions and when you reply with crazy replies when these stocks start heading down you fail to understand.......patience..thats more than 50 % of the equation - riding out the storm and waiting...the whole concept hasnt changed..with all the uran plants that will be going up in the future...gold and silver will run again - just a matter of time - metals will take off again - watch and wait-- youll see ..china india and the rest of the world will need a vast new infrastructure requiring lots of steel and other metals..sooner or later the metals will take again - we will get through this recession just like we have all the other ones in the past...this is just a repeat of previous ones....and then just like in the past these metals will take off again..you say rude and offensive ha all i hear is alot of whats going on now - thats not the big picture and this is only temporary... things will return back to normal and unfortunately the price of oil and gas will rise up again...you can bet on that!

January 13, 2009 | Unregistered CommenterWIL

look to the future thats where the profits will be from here!

January 13, 2009 | Unregistered CommenterWIL

I totally agree with you Wil. If I had the patience to hold onto these damn uraniums, I'd be laughing at how much profit I can make, over a time span of maybe the next 2 years. Right now, I'm playing the percentages by selling, then buying back, but a day is probably coming when they will head up so fast and so far, that I might miss it if I sell out too soon. The problem with my methods is that I'll get too used to selling based on technical charts, then one day mass psychology will take over, greed will prevail, the hedge funds will be jumping in (I already see individual orders of 400,000 shares being placed - my brokerage website lets me see all the bid and ask prices on a stock and gives me a real-time stock-ticker on 15 stocks).
Anyways, I keep promising myself that this time I'll buy and hold for the long-term, cuz it's true, at these prices, we could see an increase of up to a 1000% on some of them. We already saw Laramide (LAM) go up 400% in 2 weeks, and it is holding onto those gains. Here's my problem, and the problem we all will face if we buy and sell; I won't buy LAM now cuz I think it is overpriced compared to the other urans. Dumb but true.
The one risk with Wil's expectation is that this recession might be headed for a depression, hopefully not. It will all work out in the future, but can we ride it out for a long time? Will all these companies survive?

So, is this the longest damn comment sheet on record at Uranium-net?

January 13, 2009 | Unregistered CommenterBob G.

Hmmm...89% of my post got chopped off...I'll have to rewrite the question which makes sense if you see the rest of it...tomorrow.

January 14, 2009 | Unregistered CommenterSteve

Steve, If its any consolation it wasn't us as we dont do that sort of thing. We have also checked the site and it appears to be operating as normal, please try again.

January 17, 2009 | Unregistered CommenterUranium Stocks

Bob G, Yes its huge, 8902 words in comments!

January 17, 2009 | Unregistered CommenterUranium Stocks

hehe. I'll have to admit, I screwed myself out of TVC. It never dropped back to my 0.165 to 0.195 range.
But not to be too stupid, I went out and bot PNP, JNN, CXX, and DML (the last two were based on recommendations from this site, uranium-stocks.net. Thanks, guys, they went up right away and I got them lower than your recommended prices).
My reading of technical charts, and then my intuition and some good luck thrown in, all combined to suggest that the pull-back in the urans would stop at the mid-mark of the Bollinger Bands. Sure enough, check it out for yourself. All except LAM and TVC, which didn't drop much at all about 10%. I'm thinking of holding now for awhile.
Thanks for the great comment string we had going here.

January 18, 2009 | Unregistered CommenterBob G.

Bob G, thanks for the comments and well done.

January 18, 2009 | Unregistered CommenterUranium Stocks

Finishing my partial post earlier...

I use etrade. It costs $20 Canadian (~15US) to trade, but that's it, no fees. But I have a few problems, one is that I cannot do an aon (all or nothing) so what is happening is that I end up trying to buy $500 of one stock and getting a partial fill of $80 worth. Then the rest is not filled and the order is expired the next day. So on that day commission was 20%, which is way too high.

On this comment by Bob G:

" I won’t buy LAM now cuz I think it is overpriced compared to the other urans. Dumb but true.
The one risk with Wil’s expectation is that this recession might be headed for a depression, hopefully not. It will all work out in the future, but can we ride it out for a long time? Will all these companies survive?"

I agree, and do not think that it's dumb. The run-up in markets over the past couple of years was a derivative based "bubble." Bubbles never last. World-wide, there are 600 trillion bucks in derivatives -- not even one half trillion has been unwound.

Shipping out of America ports dropped 18% in December. World-wide shipping in foreign ports has essentially stopped. Ten of the 35 supertankers available in the world are being used for speculative "storage." Each holds 20 million BARRELS! That is enough to fuel Europe's needs for 100 days. Sure the oil countries are (trying -- some counties are doing) reducing output but in reality these countries are freaking out. Look at Chavez, his socialist ego seemed to grow with the growth of the bubble. But like Venezuela, and including most of the other oil producing nations including Kuwait, all are having trouble meeting debt requirements. (Ok Indonesia's doing ok)

Now we see a correction of a major bubble. But, if the stock value of the "bubble top," was $10 and it dropped to $1 (~90%) and has now jumped to $3.00, I think it wise to focus on a price someplace between because this sort of bubble will occur again, but not in my lifetime. (Unless it does due to hyperinflation, which I admit is a possibility) But the word Stagdeflation was not heard before, well folk, we are in it. There is another possibility StagInflation, try that on for size. In that case, sure we need U308 years out and as things stand there will be a shortage eventually. But look back at the Great Depression. That took 13 years (and a Great war) to return to a bull market. Well Wil, I imagine you're a young buck, so buy and hold and then retire in 15-20 years when the nukes scheduled for 7 years out are actually built, but frankly, I ain't got that much time. Different strokes for different folks, I guess.

Now here is a question: There are tons of stock out there with U claims or prospects. Many are focused upon gold because that's hot now... I wonder if (or when) money pours back in from the sidelines (ignoring the fact that 40% of that supposed money is "gone") and if there is a run-up on U stocks, if some of these turkeys, with a name change, or some promo will fly (Thanks to Howard Ruff who said: "When the wind blows, even turkey's fly). Thoughts?

Anyone want to comment on the best online brokerage to use
for Canadian and other world stock? (I like Can/UK/Australia/Brazil)

I use Interactive Brokers but, though I'm new to their (very, very scary but wonderful) site, they seem to add fees, and though I'm not sure, I think that there is a $0.005 fee/stock added. If I buy something for 2 cents, that'll kill me, though their fees for higher priced stock seem phenomenal. Steep, steep learning curve there. Check them out if you wish, there is a demo account that you can play with.

January 19, 2009 | Unregistered Commentersteve

Steve, We have just checked on Etrade and there is an 'All or None' tick box when trading options, are you saying that this facility is not available in Canada or that you have tried it and it didn't work?

January 19, 2009 | Unregistered CommenterUranium Stocks

New rules now exist on the TSX and TSX.V, as this advisory from Royal Bank Action Direct indicates:

"Effective as of market close on Friday, January 16th, the TSX and TSX Venture exchanges will no longer accept all-or-none (AON) instructions. In connection with this, any open orders carrying an all-or-none (AON) instruction will be cancelled prior to market open on Monday, January 19th.

Any orders submitted after January 16th with AON will not be honoured by the exchanges and subsequently cancelled."

However, there's a way around that and it also answers Steve's query. If you have an open order for "any part", I would recommend you choose a date for it to fill by, for sometime longer than one day. For instance, if I am going to sell 25,000 shares today at "any part", I will choose the time period that I want it to fill within, by setting ahead the "Fill By Date" 7 days ahead. That means that the order remains open for 7 days. So, if only part sells today, I still have the remaining 6 days for the balance to fill. If the whole order fills in that 7 day period, then I will only pay one transaction fee, $9.95 CDN. I know this cuz I got caught in a similar situation as Steve; so, I figured this method out and it works. I don't use Etrade, so don't know what their order screen looks like, but I assume every trading desk has a "Fill By Date" available.

I don't have any recommended brokerages, as all the banks up here have their own brokerage arms (only 5 big banks and 3 or 4 smaller ones, not like in the USA) require you to have an account at their bank to attach to the brokerage arm.

January 19, 2009 | Unregistered CommenterBob G.

There is, in *etrade an "all or nothing box" but only for domestic orders. I've asked and have been told it is not available on Canadian orders. Also only a single day limit order, the order expires at the end of the trading day.

I'll have to see how IB works... I think that they offer a lot more options, it just may be that the $0.005/share would prohibit ordering shares that sell for less than 20 or 30 cents...but then, there may be a max charge, I'm not sure. Their system is amazingly labrythine.

Well, we'll see what the market does tomorrow. The world is collapsing, but Obama has a certain charisma, and people "want" their secure old world back. Sentiment can rule (for a month or two, at any rate) I still predict a DOW of 6600 or below... which means fishin' in the toilet again...wheee.

January 20, 2009 | Unregistered CommenterSteve

The RBS Record loses of 24Billion UK pounds and Fred Goodwin still gets 650k pension every year. That is just unbelievable! They should strip him of his pension.

March 3, 2009 | Unregistered CommenterDave So

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