Picking Junior Uranium Companies
Monday, April 16, 2007
By Darin Diehl
Experts muse on best way to tap into uranium market at this time
LAS VEGAS - Less than a decade ago investors interested in uranium plays had fewer than 10 companies to peruse. Today that number has grown to well beyond 400. At last week's Casey Research Uranium Stock Summit in Las Vegas, a panel of experts offered investor delegates some thoughts on what to look for in a junior uranium company. Below are some selected quotes from that discussion:
Dave Forest - Geologist, Researcher, Contributing Editor to the Casey Energy Speculator
"I'm not a big fan of relative valuations. It's a trick a lot of brokers use to sell. I prefer to look at companies that have a real chance at getting something. The real prize is some company that can make a discovery and generate wealth. You want to find a management team that will go out there and find something that works."
"The number one thing I look at is the business plan. To simply raise a bunch of money, drill some holes and hope you find something - that is not a good business plan."
"Always be looking to lock in some of your gains. Keep an eye on what's happening in the wider markets."
"Don't rely on the rising tide to lift all boats. It's been a great party. The uranium price rise has been phenomenal. But now it's time to make sure you're in stocks that aren't relying on the rising tides."
Kevin Bambrough - Research Analyst, Sprott Asset Management
"As for relative value, I think there is a case for that. A stock can be cheap and it can also be viewed as the cheapest in its group."
"I think the uranium price will probably top out in the next 12 to 18 months. The days of the easy money are over. But still those firms that can deliver the goods will be the ones that can deliver the real money."
Jim Mustard - Senior Mining Analyst, Haywood Securities
"Junior companies need to have a good "road map." Are they committed to their plan? Does management have the ability to deliver assets into the company?"
"It's really all about people. Good people do good things. Pay attention to management. Do they have a technical understanding of where they are and where they want to get to? I will not sanction an investment if I don't see a thoughtful roadmap of where they are taking their company."
"At some point, you need to cut back on your holdings and select the few you think are the best quality."
Darin Diehl
Publisher, Executive Editor
StockHouse |
