Saturday
Jul102010
Uranium Stocks Update 11 July 2010
Saturday, July 10, 2010 at 08:12PM 
The average spot price for uranium has remained steady for most of this year as the above chart from u308.biz indicates with the long term uranium price currently standing at $60.00/lb according to uranium.info. The sector remains flat for uranium stocks with very little in the way of movement other than a general drift to lower stock prices.
From time to time we see the odd sign that things are moving in this tiny sector or a recommendation to buy a particular stock hits the air waves which is all fine and dandy but the fizz soon dissipates as this sector is still not in vogue and therefore continues to be ignored. There are many examples of this lack of popularity as you are probably aware if you own some of these stocks including Cameco Corporation (CCJ) whose stock price has fallen from around $32.00 at the start of the year to close on Friday at $22.84. Another hot stock, Extract Resources (ASX:EXT) traded just a tad above $11.00 last September, closed on Friday at $6.95. Some of the smaller stocks have also been hammered and now trade at what appear to be silly prices. Is this a buying opportunity you ask? Well it could be, but until we some really positive signs of a turn around we prefer not to put any more cash into this sector. How long do have we to wait, maybe a year or so as this pattern of consolidation continues to move sideways.
Maybe there is a pleasant surprise waiting in the wings which would be most welcome, however, for now we will remain in observation mode until an opportunity presents itself.
Have a good one.
Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.
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Reader Comments (4)
Dear Sir,
My Uranium shares are generally down by 80%.Only one ist positive, that's Paladin. What is your suggestion? Buy more because these shares are dead cheap, or wait and see. There are some people announcing a shortage of uranium for 2013/14.
On the other hand, Kazakhstan and other places (Namibia, Niger)are increasing their production enormously.
Best Regards.
George
Why don't you guys mention Uranium one, this company is growing so fast and is one of the 5th biggest in the World .
Uranium one is growing so big so fast it could be the biggest in the future .
To George , buy more shares cheap and average down , Kazakhstan and Uranium one + looking at Africa is a sure bet .
Hello, would you please advise what your evaluation is of uranium stock URZ (Amex) Uranerz Corp Comm? I realize all of the uranium stocks have taken a hit but would like to pick up some additional shares. Do you still stand by your comment to hold off? Thank you.
Thanks Kevin,
I already own Uranium One.I'll keep them. Kasakhstan is now nearly biggest place for uranium. But Russian owner might be a problem,later.
Rgds.
George