Wednesday, October 15, 2008 at 05:28PM
As if things were not tough enough Uranium One now have to wrestle with unions as workers have gone on strike at their Dominion Mine in South Africa. The mine was shut down about a week ago as management/worker relationships worsened.
Raymond James analyst Bart Jaworski had this to say:
"We expect the strike may be protracted, adding that the labor upheaval could allow the company to declare 'force majeure' on the unproduced portion of contracted deliveries this year.
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, uranium is still drifting lower and the dash for cash appears to be intact despite the trillion dollar financial injection into the markets so the ‘bottom’ has yet to make an appearance. We’ll wait and watch and look for signs that this tiny market sector has turned north before we deploy any more cash. However, when the price of uranium stabilises and begins its next rally these uranium stocks will rocket and it’s a rocket that will bring considerable relief to most of us.
Uranium One Incorporated trades on the Toronto Stock Exchange under the symbol of UUU, has a market capitalisation of $416.93 million with 468 million shares outstanding.
The above chart is a sorry sight as we can see.
Try and have a good one.
Got any comments? Fire them in!
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.
To stay updated on our market commentary regarding gold, 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. Just click here.