₪ David Pescod's Late Edition August 22, 2007
FORSYS METALS (T-FSY) $4.31 +0.45
TOURNIGAN GOLD (V-TVC) $2.28 +0.13
U308 CORP. (V-UWE) $1.40 +0.17
URANIUM ONE INC. (T-UUU) $11.75 +0.85
URANIUM PARTICIPATION (T-U) $10.15 +0.70
CUE CAPITAL (V-CUE) $1.68 +0.28
There’s little doubt where the excitement was on the mining markets today, it was all about uranium stocks. As we’ve pointed out in the last couple of weeks, if there was a sector that has been absolutely trashed in this current market panic/correction, it’s been uranium stocks.
Uranium prices have a great three-year run from under $10 to as high as $135 before the recent correction and the recent correction has been (percentage-wise) fairly significant.
Our own assumption is that once we get out of this quarter uranium prices are going to once again, be historically very sweet. But if some other analysts that are much more bullish are correct, it’s just going to be gravy-time.
Meanwhile, after the huge crash it hasn’t taken much of a move up to reward good percentage gains over the last few days.
We had wanted to get gas guy Bobby Lamond involved in a debate on what next for natural gas over the last couple of months, but he keeps begging off...just when he gets excited about natural gas, there’s something that doesn’t seem to work out.
So he’s done the obvious...gone fishing! He is suggesting that he caught this fish and apparently he’s quite proud of it...if anyone out there knows who really caught it, let us know.
As far as what next for gas, he just says at this time, “the high level of drilling in the United States with increasing storage because of lack of heat and hurricanes, is not enough to make a North American impact even with the drilling slowdown in Canada.”
He notices we have weaker gas prices (but actually we are at a 10-month low today) and approaching the fall shoulder months. However, he says, “winter isn’t far away now and the gas industry should survive to fight another day).
Obviously for those bulls in natural gas a better day is down the road.
TOURNIGAN GOLD (V-TVC) $2.28 +0.13
U308 CORP. (V-UWE) $1.40 +0.17
PETROLIFERA PETE. (T-PDP) $14.80 +0.67
SELKIRK METALS (V-SLK) $1.00 +0.07
We’ve just gone through quite a correction in financial markets around the world and while there were a few astute people that thought the mortgage problem in the States could affect world markets on this scale, I don’t think too many others believed it.
We still have more than a few weeks and probably months of nervousness about mortgage developments in the United States as real estate prices continue to drop and more and more mortgages are basically walked away from. But with the Fed now actively making sure that nothing else might go wrong, the markets are starting to recover. The one good thing about corrections/crashes is for those who are nervy enough, it’s bargain hunting time.
We’ve been nibbling at several stories over the last few days and we show you the charts of some of those we’ve been nibbling at for the simple reason that is shows you how bad a correction some stocks have faced and now it looks as if most of them (if not all of them) have put in bottoms.
We still don’t think we’re over this mess over the next two months or so, but I wouldn’t be surprised if we’ve seen the worst—or hopefully seen the worst.
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