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.
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