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Gold/Mining/Energy : Uranium Stocks
URNM 58.14-0.8%4:00 PM EST

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To: ms.smartest.person who wrote (9667)3/30/2007 5:01:54 PM
From: jimsioi   of 30201
 
ms.smartest person, re SXR

I own some UUU.v and probably will become a future holder of SXR. The article below reveals that the combined company will have a capitalization of $5 billion and produce 19 million pounds of uranium in 2012 - five years out. Doing the math on $100 uranium we see the company is selling for 2.5 times revenues five years hence...Maybe five times prospective cash flow...The valuation would be about correct for a mature producer if the revenues and profits were being generated NOW, rather than planned, hoped for in the future.

In my opinion for SXR to go much higher from here the Uranium price is going to have to shoot well past $100 and stay there, which it very well might, to enough people's surprise to encourage buying, and or the company is going to have to over deliver on its production increase time table while finding more reserves...

SXR - currently looks dead in the water..
stockcharts.com

I thought maybe rotating over to PDN but there we see a rising wedge right up to the breakdown point in late February.
stockcharts.com

We need some surprise from this acution this week when reported next to move this group of former leaders much higher, given what I see is otherwise market considered full valuation..
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