IUC is an adventurous uranium exploration and production company. It is currently involved in the re-opening of older uranium mines in the United States where estimates put production at around 3.5 million pounds of uranium.

IUC is undertaking uranium exploration in Canada and Mongolia. Geopolitically all fairly sound moves. We have to say that this is a company that we like and are tracking its progress. For various reasons we have not bought into this uranium stock yet. Is now the time to buy? We don’t think so.

Looking at the chart we can see that the stock price has gotten away from the 200-Day Moving Average by some distance. This is not so unusual for explorers in this sector at the moment, there other examples of this sort of upward spurt.

There are a myriad of reasons for this move, such as good management, potentially lucrative discoveries, known resources so far etc. But to gain 50% in the last month or so would appear to us to be based on the merger with Denison Mines Inc. Approval for the merger was received on the 28th November 2006. (So look out for the symbol change to “DML” in the next week or so) No doubts in our minds that Denison is a very good manager and this looks like a great move. However, at this moment in time there would appear to be a fair amount of euphoria built into the stock price.

It is a good investment but timing is everything so we will sit on our hands until the froth has dissipated and then consider a move. Sorry that we are not more gung ho! But please remember that we have been wrong before. If you do make an investment now please let us know how you get on and why you think now is the time to pounce!

29 November 2006