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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: Gib Bogle who wrote (9428)	5/4/2005 4:26:49 PM
From: Crossy	Respond to of 37387

Gib, interesting avenue you just brought up. Considering utilities with exposure to nuclear plants is indeed another option. More "safer" angle, but I guess also less upside appeal than the Uranium miners out there.. Just read enough on the industry background that it helped shape the kind of plays I'll be trying to uncover.. Like oil I believe that Uranium will benefit from a secular bull market of energy enabled by the next phase of globalization. Unlike oil however it had a vast supply overhang in the mid 1990ies from "secondary sources" that brought the U-spot price to its knees, around $7. Especially the non-recurring supply from the "peace dividend" (military material downblended) should NOT recur.. I heard Powers and Sprott giving $50-$100 midterm targets on Uranium prices.. This background is telling me to again forget about Netbacks and costs but turn to the broadest definition of "resources in the ground" be they certified (NIR or JORC) or just "inferred" from geologist authority after having applied state of the art knowledge and physical evidence on a particulary property. This "resource" definiton then needs to be related with marketcap to give me a value indicator.. the higher this figure the better.. I did this definition on the "producers" that is Cameco (CCJ), Denison (DEN) and ERA of Australia (ERA.AX). I found that the baseline number for "producers" is around 40 kg of Uranium per USD unit of marketcap. This is intersting as Cameco has mostly Canadian Athabascan property which is high grade (up to 20% U/ore) but ERA has low grade ore in Aussieland (up to 0.15% U/t ore). Hmmm... rgrds CROSSY