Laramide Resources Ltd: Buy, Hold or Sell?
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Topic: Uranium Mining Stocks — January 30th, 2007
This uranium stock is one of our bankers for this Bull Market in nuclear energy, however it does look to be overbought at the moment.
The chart shows just what a good run Laramide has had in recent months so we are really pleased with the performance that it has put in. Investment though is not about getting soppy or falling in love with one particular stock. No, Save that for your favourite football team. The chart does indicate an oversold situation for Laramide with the stock price being driven up as this market sector slowly catches fire. It is now a long way above its own moving averages, which indicates that some sort of correction is due. The RSI, MACD and the stockastics also point to this uranium high flyer being a little too far ahead, thus tempting traders to take some of their cash off the table.
So what do we do now?
This is a Bull Market and the biggest mistake we can make is to be on the fence watching fortunes being made while we differ about chart indicators and the cats ear ache!
On the other hand if we sell now we are locking in a good profit and a correction, if it happens, would present us with an opportunity to invest in Laramide at a lower price than we can get for it right now. We made our investment at $5.78 it is now trading at $10.49, a paper profit of 81%. Bear in mind that our investment in FRG and CXX doubled, so this is not uncommon at this time in the arena of uranium stocks. Got to admit though, it is a super problem to have to wrestle with.
Sitting on our hands at the moment is the conservative stance, holding on and riding through the ups and downs in the knowledge that this market sector has a long way to go yet.
The more cavalier amongst us will be tempted to sell now and buy back a little later hopefully when the froth has gone from this stock.
In conclusion this is the action we have decided to execute:
We will hold 50% and sell 50% today. Then its back to trying to sit on our hands and wait for the next pull back.
If you wish to stay fully invested that’s fine as eventually this stock will be worth a Kings ransom.
If you disagree with us then please write in and tell us what you would have done in our position.
Laramide trades on the Toronto Exchange under the symbol of LAM.
30 January 07
Laramide Resources: Short term correction due?
Laramide Resources: Up 8.8% Yesterday
Laramide: An upside breakout
Laramide: Formed a Rounded Bottom and Now Forming an Uptrend
Laramide Resources Limited: Up 26%
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Re: Laramide Resources Ltd: Buy, Hold or Sell?
It doesn’t make sense to sell Laramide strictly based upon market statistics. The real measure of value is their people, properties, infrastructure, actual value, etc. They have some extraordinary deposits and a great future. That being said, there are lots of idiots who buy and sell based on statistics, so it may go down anyway– so there is merit in your argument, if you can get the timing right, which I often fail to accomplish. I have bought and sold U stocks for over a year, but in retrospect, would have done better just sitting on most of what I had.
Comment by G Miller — April 22, 2007 @ 2:58 pm
Why sell one of the largest deposits in the world (10th) and at a time when the 3 mine rule may be lifted. They also have thousands of acres of land to be prospect yet in a highly productive area. Statistics are a tool and should not be your only means of determining a good buy or sell.
This is a great company to invest into. I currently hold 14 miners. An have been so for over 2 years.
Bruce Brocker
Comment by Bruce Brocker — April 25, 2007 @ 12:21 pm
At the time we were sitting on a paper profit of 81% and we needed to diversify so we sold 50% in order to raise some cash.
The other uranium stocks that we have bought may not do as well as Laramide - only time will tell. We don’t disagree with your comments, however as individuals our circumstances vary from day to day and back in January we thought that we needed a little more of a spread. We still hold Laramide and hope that it goes to through the roof.
Comment by Uranium Stocks — April 25, 2007 @ 1:42 pm
Does anyone have an opinion on mege uranium? Terry
Comment by terry — August 3, 2008 @ 7:17 pm