On the 9th of July we signalled a BUY on Strateco Resources and in the four months since we signalled that BUY and added Strateco Resources Inc to our uranium stocks portfolio, Strateco has risen 40%.

We had been looking at Strateco for some time before we signalled a BUY, but we were waiting for a pullback to purchase shares at a discount. The pullback came in the summer and it was in the middle of the summer doldrums that we chose to buy this stock at $2.32, after it had fallen from $4.00, a drop of 42%.

However we did not pick the exact bottom on this one as Strateco Resources went on to fall down to below $1.50. We are fully aware of the volatility of the uranium market and its stocks so we were not panicked into selling by this further drop as we were confident that Strateco Resources would make a recovery as this is a good company with decent uranium projects which will prove ever more valuable as uranium prices continue to rise.

Our patience appears to have paid off as Strateco Resources closed trading on Friday at $3.23 and this means we are sitting on a paper profit of roughly 40%. It could be a time to take some money off the table, but we are holding all of our uranium stocks. The correction in the uranium spot prices appears to be over as we have seen the uranium price rise to $80/lb, then to $84/lb and it now stands at $93/lb.

Strateco Resources is a uranium exploration company, with some interesting projects in Quebec, Cananda and it is now worth nearly $350 million. If you want to know more about Strateco Resources and why we bought it, please read our write up of the company just click here.

Strateco Resources Inc. trades as RSC on the Toronto Stock Exchange.

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