Hi Koan!
I am ashamed to admit that my purchase of a small position of WRI was purely a speculative flyer. I usually take the time to really dig around and research the hell out of a company before I buy, but on that one, a friend that I know and trust suggested I should get some. I started doing some DD and in an hour the stock went from 50 cents to 60 cents, so I just hit the buy button. That kind of decision does not usually work out for me, but I bought a starter position at 61 cents, and I will add to it once I have had the time to meet the management, if I like the story.
I am skeptical of the uranium juniors as a sector. So many of them are trading well above $100 million market caps, with nothing at all in the way of assets except for an early stage exploration prospect. There are so many PM juniors, including IPT that have earnings, cash in the bank, resources proven up, and infrastructure in place, yet they trade well below $100 million. But for now there is a lot of money to be made in uranium stocks, and silly valuations can always get sillier. So I have rotated some of my money into the sector and I will watch it very carefully. When the music stops, I am out of the more speculative issues.
I bought another 1,000 DML on Friday, since that company seems to be undervalued within the group. It is trading well below its high of just a couple months ago, even though the company is a current producer, and controls numerous past producing mines that can go back into production relatively quickly. DML is also very active with several interesting exploration prospects so there is discovery upside too. That is one company I have held since 2003 and will continue to own even when the uranium frenzy cools off a bit.
cheers!
COACH247 |
