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Gold/Mining/Energy : Uranium Stocks
URNM 55.58+4.6%Dec 19 4:00 PM EST

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To: greatplains_guy who wrote (10434)4/16/2007 8:21:05 PM
From: jimsioi  Read Replies (2) of 30229
 
Great Plains Guy re Uranium Futures effect..

I am assuming that you are asking about the effect of the uranium futures contract on stocks in the uranium space.

I'd think the biggest effect will be on U.to where futures / stock arbitrage ought to take some of the premium ought of U.to, which I have heard is selling at 25% to NAV...

As the futures are cash settlement vehicles I'd think their effect on uranium prices will be limited and therefore mutted with respect to the shares of producers and exploration companies... The question is in my mind: will the introduction of speculation product be part of at least a short term topping process for the group...?
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