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Friday
Feb062009

Cameco Corporation: Cigar Lake Re-visited!

Cameco logo

Friday, February 13, 2009 is a date for your diary, as ominous as it may be, as that is when Cameco will publish its next quarterly news release containing a summary of the progress being made at Cigar Lake. As a reminder this it what Cameco said in its last quarterly news release in 2008.

On August 12, 2008, Cameco suspended remediation work in shaft 1 at Cigar Lake after an increase in the rate of water inflow to the mine.

We are continuing to investigate the source of the inflow. Based on the information collected to date, we have identified a potential source at the 420 metre level of the shaft. This area was developed many years ago to assess the practicality of developing a working level above the orebody. This proved to not be feasible due to poor ground conditions. A concrete bulkhead was put in place and the remainder of the level was subsequently used for minor mine infrastructure and storage. Our investigation is currently focused on this area. However, we continue to review the area in and around the plug that was poured subsequent to the October 2006 inflow, as well as the two areas where it was previously determined additional precautionary measures were not necessary. Information collected to date does not suggest any problem in these areas.

Submersible remotely operated vehicles (ROV) are being deployed in the mine to explore the potential sources, provide visual and sonar imaging of the mine workings and measure parameters like water flow and temperature. At the same time, we are pumping water from the mine to create water flow to assist in identification of the inflow source. While the work is time consuming (some items like doors and pipes have to be cut away to allow the ROVs access), it is progressing steadily and providing good information to the investigation team.

Once the source of the inflow is identified, we will develop a remediation plan.

Progress on the remediation of shaft 2 continues. The inflow sources have been sealed and the effectiveness of the seal has been demonstrated. The shaft is now ready for dewatering and will be scheduled as part of the overall remediation plan for Cigar Lake.

In order to keep our stakeholders informed on the progress of remediation activities, we will provide updates with each quarterly MD&A or more frequently if there are significant developments.


Hopefully Cameco will have determined the source of water ingress in shaft 1 and have compiled at least an outline plan of action for its containment. On shaft 2 its fingers crossed that the seals are still holding, however it is not clear to us just when the dewatering will commence, hopefully this next update will contain a little more detail of the engineering problems, the alternative solutions available and an outline schedule for the works to completion. The provision of a doable schedule and an achievable end date would give investors a well deserved boost. Its now a case of watch this space!

Over the last month or so Cameco's stock price has deteriorated from around the $24.00 level to close yesterday at $20.00 so we are looking for some good news in order to reverse this downward trend.

Cameco Corporation has a market capitalization of $7.31 billion, a 52 week high of C$44.38 and a 52 week low of C$14.33, turnover yesterday was 3.67 million shares and trades as CCO on the Toronto Stock Exchange and as CCJ on the New York Stock Exchange.

For disclosure purposes we do not own this uranium stock.

If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, just click on the links.








Wednesday
Jan282009

How Obama Will Influence Energy Stocks

Obama Picture from Casey 29 Jan 09




This article covers Coal, Natural Gas, Nuclear, Wind, Solar, Geothermal, Hydroelectricity, Biofuels, compiled by the Casey Research Team which we hope you find interesting.




How Obama Will Influence Energy Stocks
By Marin Katusa
Chief Strategist, Casey Research Energy Team
Casey Energy Opportunities

One might think the United States would be charging hard on energy security as well as border and other kinds of security in its Global War on Terror campaign. Not so
. For example, America imports some 12 million barrels of oil per day, yet maintains a Strategic Petroleum Reserve (SPR) whose maximum is 727 million barrels (and its inventory is currently lower, 701 million barrels, because the government cut off shipments to it last year in an effort to modulate gasoline prices.) The math gets even more discouraging when you work in the fact that the SPR's daily drawdown capacity is only 4.4 million barrels – so America is completely unprepared for any worst-case scenarios, or even the bad-case ones.

It's not that the United States doesn't have the capacity for domestic energy production. Administration after administration, Republican as well as Democratic, is simply choosing to legislate it away. Designate the land above one of the biggest, cleanest coal deposits in the world a national monument, rope off huge swaths of offshore waters to drilling, threaten stringent new mining laws, derail hydroelectric projects, and America is handing foreign suppliers its own barrel for the country to crawl under.

Speaking of administrations... how about the new one? Will President Obama's promised green policies make a difference? As we laid out in the November 2008 edition of Casey Energy Opportunities, the short answer is no. In fact, we believe that if Obama pushes through the goals as he's outlined, the United States is actually headed for a more, not less, dangerous path. Green energy isn't enough to offset the pressure he plans for the “dirty” energies. A bull market will come for the traditional energies in the long run; the problem lies in the shorter term, in the instability of America's energy portfolio before the Obama administration realizes that nice girls don't wear that much paint.

With this in mind, let's look at each power generation technology from an investor's view.

Coal. However you slice it, the coal industry is in for a hard time under Obama. He proposes a tough 100% cap-and-trade system that will make coal plants uneconomical to run at almost any electricity or coal price around now. This goes for existing as well as new plants, and installing the latest-generation scrubbers will just be another route into the red for many companies. Did we mention that coal generates almost half of America's electricity?

As a result, we expect coal prices and coal utilities to trade well below their worth for the next few years. We're closing our position on a coal ETF in our portfolio, which we recommended in February 2007 and took a free ride on in June. But as time goes on, America will realize how overambitious Obama's targets are and come back to the tried and true. With the help of the coal industry's powerful coal lobby in Washington – not to mention all the voters the coal industry employs – coal will catch fire once more, and we'll reevaluate our position then.

Natural Gas. While a thermal-generation technology like coal, natural gas is less likely to feel pain under Obama because of its cleaner burning. And as natural gas is already one of the cheapest power technologies available, the industry would weather a cap-and-trade system better than coal. Natural gas is set to push to the forefront of the electric world.

So far, so good. The next factor changes things a bit for the savvy investor, however. Without Russia's heavy hand on the tap to deal with, prices should shadow market patterns in United States. Due to the country's large natural gas reserves and resources in both gas shale and coal bed methane, we predict natural gas prices will drop in the near term. Thus we're avoiding all but the best U.S. natural gas plays in the Casey Energy Opportunities portfolio.

Nuclear. Obama's stance on nuclear energy is decidedly neutral. He appears to recognize its benefits for domestic energy security as well as its carbon-reducing qualities. He's also aware it's still a touchy subject for many Americans, even with the Yucca Mountain waste disposal site moving forward. We add this up to mean that nuclear reactors currently in planning stages are likely to go ahead unimpeded by federal or state meddling. This is good news for our uranium picks.

There's another bullish influence coming for uranium: the sunset of America's current Highly Enriched Uranium (HEU) agreement with Russia in 2013. At best, Moscow will demand to renegotiate the bargain-basement price it's now obligated to offer under terms of the agreement. More realistically, it will threaten to shop its converted weapons-grade uranium elsewhere – another barrel over the land of the free – and Russia actually has several incentives to do so. Sooner or later, the United States will return to sources within its own borders, then from Canada.

Wind. Wind energy has much to gain from Obama's plan, which, as it stands, has some $15 billion slotted for clean energy initiatives. His target of “25% by 2025” would require roughly double or even triple growth for the wind industry. Obviously this growth is achievable only through government subsidies, which may or may not be sustainable. Only a few areas of the United States, such as around the Great Lakes and offshore in territorial waters, enjoy the steady stiff breeze that wind farms require to be viable.

Offshore projects raise another hurdle: transmission lines. For fun, let's run some numbers for President Obama. For wind power to supply 20% of America's power by 2030, the country would need to build an estimated 12,000 miles of 765 kV transmission lines. At a cost to generate power of US$0.06 – about the same as geothermal – the transmission lines would cost $2.6 million per mile (in today's money), or $31 billion total. That figure would account for 21% of the total budget for clean energy alternatives, or to put it another way, two years' funding for NASA.

A company with projects bearing very good wind reserves near an existing transmission line is the only kind of investment we'd consider here. For now, however... like T. Boone Pickens, who recently announced he's putting his giant Texas wind-farm project on hold because of the credit crunch and falling energy prices – we, too, are steering clear of wind energy.

Solar. Sun-powered electricity is a great long-term energy provider. Despite advances in the technology, however, it continues to be one of the highest-cost producers; and there will always be the issue of what to do when the sun doesn't shine (and not just on cloudy days – there's every night). And while the Mojave Desert isn't as remote as China's Gobi, the incoming administration still needs to consider cost of infrastructure when promoting solar farms. That said, we still believe that our investment in two hand-picked solar stocks will return good profits in the next few years.

Geothermal. Many projects generating electricity from hot water would run into trouble if oil were to go below $50 per barrel. True still, but geothermal continues to appeal nonetheless. First, oil is unlikely to stay this low for long; and more fundamentally, geothermal's load factor – as high as 95% -- pushes it far to the head of the renewables class and comparable to natural gas and nuclear.

Its limitation is geographical. At the very best, only 10% of the United States could be supplied with geothermal power, according to the Department of Energy, and we find that figure optimistic. Geothermal currently represents 0.35% of America's power generation.

We're willing to invest in geothermal companies because of the robust economics and the fact that they're likely to do well under the cap-and-trade system that appears inevitable. We want to pick those that have not only good resources but also customers, so two top-quality geothermal companies are currently in the Casey Energy Opportunities portfolio.

Hydroelectricity. On the scale of energy generation technologies, hydroelectricity tends to rate as reliable, and generally cheap and environmentally benign. Like Europe, however, the United States has little hydroelectricity left to exploit, and even the newer run-of-river technology is unlikely to bump its contribution up much from hydropower's current 10%.

Biofuels. Unlike the Casey Research Energy Team, Obama is fond of this stuff. Biofuels are both heavily subsidized and currently high-cost alternatives to reducing carbon – second generation (from non-food organic material) and third generation (using algae) included. However, the White House is soon to hold a former senator from Illinois, one of the largest ethanol producers in the United States, so biofuels are likely to hang around in some form or another. We'll keep our eye on research, as well as industry developments in the near future.

***

As Casey Research Managing Director David Galland likes to say, “There has never been an economy so heavily politicized as the current one.” Therefore, anticipating how a market sector will be faring is not enough anymore… you also need to be able to foresee what Washington and/or the Fed is going to do to influence that industry.

To that end, Casey Research offers you a brand-new FREE special report, Obama’s Newer Deal, a short but comprehensive guide on the policies and stances you can expect from the new administration… and how it affects you as an investor. Plus, test Casey Energy Opportunities risk-free with this special offer… clicking here.

Have a sparkling week.

Stay tuned for updates in this fast moving market…
If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, just click on the links.



Tuesday
Jan272009

Crosshair Exploration and Mining: Up on heavy volume!

CXX Chart 28 Jan 09



Chart courtesy of StockCharts.com


As we can see from the above chart the recent volatility continues with dramatic oscillations in Crosshairs stock price, which is just managing to hold above its 50dma. The volume has been heavy over the last two days with 1.4 million shares changing hands yesterday. The technical indicators are heading north which suggest that the stock price should continue to improve from here.

We have owned Crosshair in the past however we sold our stake on the 5th February 2007 we wrote the following:

There are times when we just have to bite the bullet and be happy with a small profit for now. We bought in at between $1.86 and $2.00 on 25th September 2006 and sold for around $2.60 today. So using the $2.00 level for calculation purposes we are banking a profit of 30% made in just over 4 months.

Having recently purchased this uranium stock at $0.25 on 6th January 2009 we now hope to participate in its recovery and generate a small profit in the not too distant future.

Crosshairs market capitalisation is $20.87 million with 94.87 million shares outstanding, the 52-week high is $0.99 and the 52-week low is $0.09 and is trading at $0.22 as we write.

Got a comment – then fire it in!

Have a good one.

If you are new to this web site and wish to receive our free newsletter regarding investment in uranium stocks and updates regarding uranium, then please click here to subscribe.

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Sunday
Jan252009

Trigon: Re-visited

Trigon Chart 26Jan09


One of our readers, who is a big fan of Potash has sent us this article which we are posting for your information and enjoyment. This is the opinion of the author and not uranium stocks



I wrote this one myself. Please feel free to post it, edit it, or use it however you like. They have just under 3 million pounds of NI-43-101 compliant uranium, plus own 38% with an option to take 50% of this exciting play in New Mexico:


American Company traded on the TSX Venture Exchange:


Intercontinental Potash Corp (Trigon - TEL.V) Review

A review of the technical reports as well as the research the University of Colorado did on Polyhalite. The just of it is that Polyhalite was proven to be an effective and superior fertilizer over potash, however, by the time the research was completed, major discoveries of Potash were made in Saskatchewan and the former USSR, which negated the appetite to invest in this area. Fast forward to today, while sales of Potash are slowing due to Farmers inability to access the credit they typically use to buy Potash, and repay after their sales of the yield, Potash producers are shutting down much of their production in an attempt to curtail falling prices (expected to ease in the 3rd quarter of 2009). What many believe is that the farmers non-use of potash fertilizers this year will result in a significantly smaller crop, coupled with what is already historically low inventories of grains in reserve. This will contribute to a potential global famine - a food crisis of sorts, which will rival and exceed the rice wars of 2007. The 2010 crop season will see a return of the frenzied buying of Potash by farmers to address this problem (assuming they can access credit - likely government credit), but they will be buying into reduced inventories due to all global Potash producers cutbacks in production. Also, I believe it will take 2 full growing seasons and Potash fertilizer applications for Farmers to get their soil balance back to levels of 2007, meaning there will at the very least be significant and unprecedented demand for Potash fertilizer products at least into 2012/2013.

Polyahilte's properties show it is more versatile than that of Potash. It can be applied in areas of high rainfall, high acidic soils (places like Brazil, India, and Southern China), and can be used an and acceptable Organic food production fertilizer. As compared to most other fertilizers, it is also Chloride (toxin) free, which increases its appeal amongst the green crowd. Trigon / Intercontinental has also suggested Polyhalite will retail at a lower cost to farmers than Potash. Therefore its market potential is actually larger than that of Potash....plus the project is projected to produce for around 75 years.

From a Polyhalite production perspective, the report shows that it can be mined through minimally environmentally invasive underground methods, while it's processing only requires it be washed and crushed. There is no requirement for upgrading and refining using toxic chemicals, or other third party agents deemed to be environmentally compromising. As per recent comments made by New Mexico State officials, there is tremendous behind this project, and there is a willingness on the part of the communities which are impacted by the activities of the company to support the approval, development, and (read between the lines) funding of the Trigon / Intercontinental Project.

All in all, this seems like a very solid concept, with strong backing. Had the global recession not hit, Trigon would be easily trading in the $2-$3 dollar range right now. The good news is that markets are forever changing, and you'd have to believe everything was going to zero to think that at some point in time, the markets will reverse course, and trend upwards again. When it does, this company appears to be one that will be a huge beneficiary of that event. On the flip side, as someone else suggested, we may see some relief come sooner rather than later through - believe it or not - the Obama administration, and its related stimulus package(s). Keep in mind, America is the bread basket of the world's grain production, and when threatened by Potash Producers - what is compared to the OPEC Oil Cartel - Canadian, Russian, Belarus, German, and Israeli Potash Company driven supply shock, the most logical response would be to invest in developing and increasing America's own Potash & Polyhalite Fertilizer production which decreases its' dependency on Foreign Fertilizer (aka ENERGY for Humans), creates American jobs, and reduces the carbon footprint of America through decreased need to transport fertilizers from global locations. This will become very important to America’s corporations as it seeks to garner carbon credits. There is only one way to buy into Intercontinental Potash, through Trigon

Please feel free to add your own thoughts to the above commentary.

Have a good one.

If you are new to this web site and wish to receive our free newsletter regarding investment in uranium stocks and updates regarding uranium, then please click here to subscribe. Alternatively if you wish to divest your investments in the energy sector then please take a look at Doug Casey’s Energy Speculator by clicking this link.

Friday
Jan232009

Uranium-Stocks: Portfolio Update 25 January 2009

Uranium Chart 24 Jan 09
Chart courtesey of www.uranium.info.

The uranium spot price stands at $51/lb according to TradeTech with the long-term price of uranium trading at $70/lb as depicted on the chart above.

On the 6 January 2009 we decided to put a toe in the water and purchased shares in Denison Mines Corporation at $1.66 and Crosshair Exploration and Mining Corporation at $0.25, other than that there are no changes
.

Our intention remains to hold on to what we have as the damage has already been done to our uranium holdings, and we are holding our positions at heavy losses until such time that the uranium industry turns around, although we acknowledge this could be some time away. In the mean time we do intend to make the occasional acquisition as and when the opportunities present themselves

Here follows our portfolio update as of 24 January 2009:

Cameco Corporation – Watch
This uranium heavyweight closed down at $16.82 on Friday, down from $17.23 on 01 December 2008 when we last updated this portfolio. We currently have no position and are not buyers at this point.

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 $0.075, which is just above its 50dma.

Uranium Participation Limited – Hold
Not much change in this stock since our last portfolio update, now trading at $7.16 as opposed to $7.39. We bought at $11.97 on 21 November 2006 so still in the red with this trade.

Strateco Resources Incorporated – Hold
We made a small investment in RSC at $2.30 but it crashed to $0.48 at our last update, before recovering slightly to close Friday at $0.74.

Laramide Resources Limited – Buy
We bought 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 at the last update but closed yesterday at $1.86. 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 was trading at $0.72 at the last update and closed yesterday $1.18. So, if you did decide to bag a few of these shares then well done.

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 at the last update and closed yesterday at $0.34

Aurora Energy Resources - Hold
We bought Aurora on the 5th March 2007 at $14.17 and it was trading at $1.21, at the last update and it closed yesterday at $2.17 a slight improvement but still a total hammering for our position. This is due the sell off in the sector, as well as licensing issues in the central mineral belt.

Strathmore Mineral Corporation - Hold
We bought STM on the 14th April 2007 at $4.96 and it was trading at $0.24, at the last update and closed yesterday at $0.41 for a slight improvement however still a very disappointing performance indeed.

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 $0.74, however it has made a slight recovery from trading for under 40 cents recently.

Other than sit tight through these torrid times, there is little we can do right now. This situation may remain with us for some time, so we will just have to hold on until the argument for nuclear power begins to take centre stage again and gives the uranium price a boost.
However 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 favourites uranium stocks as this tiny sector begins a slow course of recovery.

Have a good one.

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Tuesday
Jan202009

Uranium One: Re-Visited!

UUU Chart 20 Jan 09


On October 15th, 2008 Uranium One was suffering due to strike action, which had a dramatic effect on the stock price, and we wrote the following:

This is a kick in teeth for the investors who must be wondering just what else can go wrong, as this stock has fallen heavily to close yesterday at $0.89. We do feel for the investors as we are in a similar position with some of our stocks.

As investors these situations raise the question of ‘Is this the buying opportunity of a lifetime or will it get worse’.


Well from the above chart we can see that things have improved since then and yesterday Uranium One traded 14.6 million shares to close at $2.15. We can also see that this stock has made steady progress over recent months avoiding some of the volatility that has seen other uranium stocks oscillating widely. However it is still light years away from the highs achieved in April 2007 when the stock reached $35.00, but it is heading in the right direction and if you don’t own it you might want to add it to your watch list. For disclosure purposes we do not own it but would anticipate it doing very well once uranium starts to head north.

The current spot price for uranium Stands at $51.00/lb and the long-term price is holding at $70/lb according to TradeTech which is the price to watch as this is where the lions share of the trading is conducted.

Uranium One Incorporated trades on the Toronto Stock Exchange under the symbol of UUU, has a market capitalisation of $1.01 billion with 469.52 million shares outstanding.

Got any comments? Fire them in!

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Saturday
Jan172009

Laramide Resources Limited: Showing signs of life!

LAM Chart 17 Jan 09

Chart courtesy of StockCharts.com


In late December 2008 this uranium stock traded as low as $0.60 so it is pleasing to see that it is now heading north and that Laramide closed at $1.95 on Friday. We are aware that this stock price is a long, long way from its former highs when the share price hit $16.00, however we are still believers in the uranium story and see this tiny sector as a buying opportunity.

Unfortunately for us we do not have unlimited funds to invest but we do intend to partake in some bargain hunting at these price levels as we did when purchasing Crosshair and Denison recently.

Back to Laramide where the company has:

Approximately 60 million pounds of U3O8 (uranium oxide) located in NI 43-101 compliant resources. It also has some exciting exploration projects located in the USA and Australia, with the potential to double these known resources.

It should also be remembered that Laramide also has a gold interest as we reported on June 19th, 2008:

“The gold mineralisation appears to be partly at least spatially separate from high grade uranium mineralization. To date it is not clear what is controlling the gold mineralisation; however the mineralisation could be distal to uranium. This opens up the possibility of a separate substantial gold deposit”

So we will continue to hold our stock and monitor Laramide’s progress with the view to possibly increasing our exposure to this stock. We should note here that do need to stay of aware of other players in this market such as Hathor Exploration Limited which has been going great guns recently.

Laramide Resources Limited has a market capitalization of $121 million, with 62.55 million shares outstanding, Laramide closed yesterday at $1.95.

Laramide trades on the Toronto Stock Exchange under the symbol of LAM.

If you are new to this web site and wish to receive our free newsletter regarding investment in uranium stocks and updates regarding uranium, then please click here to subscribe.

These are fast changing times and its essential that you stay up to date with what is going on in the market. For our latest commentary and trading signals on gold, click here to subscribe to The FREE Gold Prices Newsletter and click here for The FREE Silver Prices Newsletter.



Thursday
Jan082009

Uranium Long Term Price

Uranium Long Term Price Indicator 09 Jan 09
Chart courtesy of TradeTech

We usually get questions regarding the spot price of uranium but of late there have been a few questions regarding the long-term price of uranium.

For this data we tend to turn to Uranium.info or as it is sometimes referred to TradeTech, as they carry the above chart together with a lot of supporting data and market commentary. As we can see from the above chart the current long-term price indicator stands at $70/lb and this is the level at which most transactions take place.

Other sites that you might find useful are The UEX Consulting Company and u3o8.biz. Just click on the link to access them.

U3o8 Uranium Chart 09 jan09
Chart courtesy of u3o8.biz

Hope this helps.

Have a good one.

If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, please click on the links.

Monday
Jan052009

Denison and Crosshair Purchased!

DNN Chart 06jan08
Today we decided to put a toe in the water and purchased shares in Denison Mines Corporation at $1.66 and Crosshair Exploration and Mining Corporation at $0.25.

Firstly Denison Mines Corporation; this is a company that we tried to buy when the uranium market was far more buoyant but we failed to do so as our bids were too miserly. This stock is well thought of and has many supporters and at one time traded at around $14.00 per share. You could argue that we are late coming in at this time as this tiny sector has suddenly spiked and you would be correct in thinking that way. However we wanted to see some signs of life before making any more acquisitions and hopefully this recent upsurge is the beginning of a revival for uranium stocks. There could well be some profit taking by those who moved early but in twelve months or so we expect to Denison trading much higher than the price we have just paid for it. This is our first purchase of Denison but we do hope to build a bigger position going forward.

The second purchase was for Crosshair Exploration and Mining Corporation, which again is a uranium stock that has traded much higher in the past so we have taken a small position at twenty-five cents. We have followed Crosshairs trek south for some time now looking for a bottom and as you can see from the chart it has been badly beaten up. However, the last few months or so it has shown signs of consolidation and more recently jumped higher. We are hopeful that this is also a beginning of a new trend for this stock.

Crosshair Chart 06jan08






Got a comment – then fire it in!

Have a good one.

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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.

If you are new to this web site and wish to receive our free newsletter regarding investment in uranium stocks and updates regarding uranium, then please click here to subscribe.

For our latest commentary and trading signals on gold and silver, click here to subscribe to The FREE Gold Prices Newsletter and click here for The FREE Silver Prices Newsletter.