Thanks John, took a look at Uranium and it is a great play but unfortunately I'm way too late.
On the "Hail Mary" stocks such as URMP, which basically raise just enough cash to drill one well, and just take one huge roll o' the dice for riches, IMO the only way to play them is to get in pre-drill, and then trim the sails as the hype builds once the drilling starts. That way, if the hype is working, the stock is appreciating and you are reducing your average cost on your remaining shares to make it be a reasonable risk/reward ratio to keep some money in when the "binary" news is ready to come out (i.e., thumbs up or thumbs down, commercial well or a duster). Hopefully you've been doing this with URMP because if you did, looking at the price chart, you'd be a happy camper right around now!
It makes little sense to me to put money in a Hail Mary stock for the first time right when the binary news is ready to come out. This is especially the case in the current commodity price environment, where you don't have to take any exploratory risk at all and you can still easily make 30 - 40% annual returns on your money. Would be interested in others' thoughts on this.
Good luck with URMP!
This wild commodity price environment is a great time to invest in these O&G hype plays, as long as you get in pre-drill. This is because the greed quotient is highest when the oil & gas prices are highest. So, does anybody know of any good O&G hype plays, where the drilling has not yet started but is imminent, or at least there is still time for more hype before the binary results are due? |
