Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Uranium Stocks
Uranium Price
Our RSS Feed

Uranium Updates

Enter your email address:

Follow Us on Twitter
« Stocks: How Many Should You Own | Main | Digging for Opportunities in Rare Earths »
Tuesday
Jun302009

Uranium-Stocks: Portfolio Update 30 June 2009



Uranium Chart 01 July 2009.JPG
Chart courtesy of u3o8.biz.

The uranium spot price stands at $54/lb up from $50/lb at the last update as reported by UX Consulting with the long-term price of uranium trading at $70/lb as reported by TradeTech. Uranium stocks, with a few exceptions have moved lower since our last update in May despite the spot price of uranium moving higher. However there has been a very good rally over the short term and this no doubt has tempted profit takers to bank some of their gains.

Here follows our portfolio update as of 28 May 2009:

Denison Mines Corporation – Buy
Bought on 6th January 2009 for $1.66, a uranium stock that we had watched for some time but for various reasons we had never managed to purchase it. We are happy to own some of this stock and believe it to be a good quality acquisition, DNN closed at $1.68 yesterday

Crosshair Exploration and Mining Corporation – Buy
We never expected to see Crosshair trade as low as it is today so we acquired some on 6th January 2009 at a cost of $0.25, again we are pleased to own this uranium stock despite the price falling back over the last few months. CXX closed at $0.23 yesterday.

Cameco Corporation – Watch
This uranium heavyweight closed yesterday at $25.68 having been around $15.61 at the last time of the last update. This rapid rise tempted us into buying PUT options in anticipation of a correction. We bought the June 09 $25.00 PUTs for $1.40 per contract (CCJRE) on Cameco Corporation (CCJ) unfortunately Cameco remained steady and thees contracts expired worthless.

RPT Uranium Corporation – Hold.
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 then bought it back at around 50 cents, however RPT closed yesterday at $0.175 up from $0.145 from last time.

Uranium Participation Limited – Hold
Another improving stock since our last portfolio update, now trading at $7.52 as compared with $7.90 at the last update . We bought at $11.97 on 21 November 2006 so still in the red with this trade with a long climb ahead.

Strateco Resources Incorporated – Hold
We made a small investment in RSC at $2.30 but it crashed to $0.48 a few months ago, has started to recover slightly to close at $0.95 yesterday. So its still fingers crossed for this one.

Laramide Resources Limited – Buy
We bought LAM at $5.78 on the 28 July 2006 so again we are still in the red with this one, it was trading at 97 cents recently however has started to recover and closed yesterday at $1.73 having experienced some extreme volatility . When we were sitting on a paper profit of around 80% we sold half of our position in order to buy other uranium stocks, as we needed a bigger spread of stocks at the time.

Mega Uranium Limited – Buy
We bought MEGA at around $4.0 on 27 July 2006. MGA has traded at $0.72 recently and closed yesterday $1.79, again a very volatile uranium stock.

Khan Resources Ltd - Hold
We bought Khan on the 5th March at $3.63 and it has since dropped to lower levels 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 again. Khan is still having a torrid time and was trading at $0.165 recently but it closed yesterday at $0.405.

Aurora Energy Resources
Has now been devoured by FRG which is both a gold and uranium play and we have included it in the gold portfolio.

Strathmore Mineral Corporation - Hold
We bought STM on the 14th April 2007 at $4.96 and it traded as low as $0.24, however, it closed yesterday at $0.48 still a very disappointing performance indeed and extremely volatile.

Ur-Energy - Hold
We bought Ur-Energy on the 23rd April 2007 at $4.75 and we also bought again on the 24th August 2007 when we acquired more stock at $3.03, it closed yesterday at $0.93 having been up to $1.60 at the last update, having traded for sub 40 cents recently.

Extract Resources Limited
This is a stock that was brought to our attention by our readership so we placed it in the watch list so we could observe it before actually buying it. At the time it was trading at around $5.00, it then dropped to $3.50 before recovering to close at $6.50 yesterday. The market capitalization is A$2.10 with 323.30 million shares outstanding.

Kalahari Minerals PLC (KAH.LN), an AIM-listed (London Stock Exchange) mining exploration group with a portfolio of uranium, copper and base metal interests in Namibia, now holds 40% in Extract Resources Limited. Extract trades on the Australian Stock Exchange under the symbol of EXT.AU.

For UK residents who have difficulty in accessing the Australian markets you might want to consider trading Extract and Kalahari via Geiger Counter GCL which is on the LSE International.

For disclosure purposes we do not own either of these stocks yet.






Other than sit tight through these torrid times, there is little we can do right now. This situation is improving as we can see by the increase in most of the stock prices, so we will just have to hold on until the argument for nuclear power begins to take center stage again and gives the uranium price a boost. We do believe that the worst is behind us now, so now is the time to be looking to acquire a few more of your favorite uranium stocks as this tiny sector begins a slow course of recovery.
Have a good one.

For those readers who are new to this site and are interested in the nuclear power sector that is currently coming back to life, you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (8)

...this has got to be the worst performing portfolio on the Internet! I'm up somewhere between 20 and 40%, so tracking the market -whats the Ufunds performance this year?

Nick.

July 1, 2009 | Unregistered CommenterNick Outram

Nick,

Great stuff Nick, how about telling our readers what trades you are making before the event so that they can also participate in them?

July 1, 2009 | Unregistered CommenterUranium Stocks

I emailed you mid feb when EXT were $1.50 but unfortunately was ignored.

I have been surprised since last September that you have missed the best uranium discovery in decades - where were you?

From the early drilling results last year which showed good width and grade it has been obvious to a lot of us that this was going to be an exceptional disvovery, especially considering the location. Consequently a lot of us loaded up when the share price was under A$1 and have made a mill.

I dont no how you can purport to be a U website and gain any respect when you missed EXT and continue to ignore other great stocks with action in Namibia like BMN and WME.

Da Latta

July 2, 2009 | Unregistered CommenterSteve Latta

...thing is I don't just invest in a single sector like Uranium so it's not going to be relevant to people coming here for specific Uranium stock advice (I guess the hint should be the web-site name...)

But in the spirit of Capitalism (! :o) I will give you/your readers my two latest purchases and they can make their own minds up -both made on 30.6.2009...:

1. SQM -this company is a big Potash/Lithium producer in South America. I have been looking for an entry point for many months but it just kept channel trading up. It seemed to be near the low-end of the channel so I bought some @ $36.46 on 30th June...

2. TSL -Trina Solar, this ones a bit of a punt on the whole solar thing. I was looking for some panels and this company produced the cheapest ones I could find. I did a bit of digging and found they where Chinese (cheap coal to melt silicon) and where also big in Germany... The whole DESERTEC thing also looks promising given my belief we are due an energy crisis circa 2012-14 -albeit a liquid fuels crisis.

So there you go: two important components of a non-FF future, the storage mechanism (Lithium) and the source energy (solar). Other big gainers for me this year along the same 'Peak-Oil' lines are:

TC: Thompson Creek (Molybdenum producer) and
RBCN: Rubicon (Saphire substrates for LEDs).

(For more information on Peak Oil check out: www.theoildrum.com or for a quick summary of the main ideas read my 2007 [Google:]"Peak Oil Joining The Dots":
http://www.megatrends2020.com/Peak_Oil__Joining_The_Dots.doc)

-and yes, Uranium is an important component in the mix/solution but only one. Once the dollar starts to fall again many commodities will continue their inevitable rise...

Regards, Nick.

July 2, 2009 | Unregistered CommenterNick Outram

Steve,

You are correct that we did not act on your comments but we did publish it as you requested follows:

Have you done any research on Extract Resources? They have been a bright light in my portfolio doubling since Dec. EXT probably have the best resource of any Uranium Miner. +100m LB maiden resource with great grades and thickness, only sand cover and in Namibia. Should be 200m LB by July and I expect they will get to 300m LB without too much difficulty. Less than 10 km from the RIO Rossing mine and activity on the register with with Kalahari approaching 50% trying to ward off RIO which own 15% of Kalahari and 11% of EXT. With a market cap fast approaching A$400m, this equates to only US$0.86 / LB which is a steal!! RIO would pay A$1b and probably much more but will have to move quick. Which should mean at least another doubling of the share price and hopefully more.

Appreciate your comments and passing it on so others can get in before RIO make there move.

Comment by Steve Latta — February 14, 2009

http://www.uranium-stocks.net/government-bailouts-a-comical-view/

July 2, 2009 | Unregistered CommenterUranium Stocks

Steve,

The only email that we have from you is this one sent on 25 June 2008 putting a question to us about Extract. Please remember that we get loads of this type of email suggesting we follow many different companies - truth is that we just do not have the manpower to follow them all. But we do invite our readers to alert us to opportunites and we do publish what we get. Hope this helps a little.

"What do you think of Bannerman and Extract? They would appear to have excellant resources in Namibia and will be able to develop low grade open pit mines similar to Rossing which is only 10km North of Extract and 50km from Bannerman. Bannerman are further advanced than Extract so are likely to be re-rated upwards sooner."

Regards
Steve

July 2, 2009 | Unregistered CommenterUranium Stocks

All good stuff, but why is there never a mention of White Canyon Uranium ( Utah Energy Corporation) who received a FONSI permit on may 26th last and are negotiating sale of ore to Denison Mines.
regards, john.

July 27, 2009 | Unregistered Commenterjohn

Like a lot of the Commodity complex Uranium spot price looks to have broken the downtrend and probably bottomed out around $40.
Like Peak Oil a bottom is only truely seen 'in the rear view mirror'. I suspect also like oil there was a significant undershoot in stock-prices induced by the general fear/panic in the markets this last year.
While I don't expect prices to get back to their old highs anytime soon now could be a good time to start adding a few select and lean producers that will obviously survive the next couple of years: low debt, good in-ground resources: high PPM resource with low extration costs so that as energy costs rise margins are not going to be trashed...

Anyone got any views on "Trigon Uranium"? I bought a small amount of this one and it has gone nowhere but I'll hold on.

Nick.

July 28, 2009 | Unregistered CommenterNick Outram

PostPost a New Comment

Enter your information below to add a new comment.
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>