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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?

To: smh who wrote (4280)	11/24/2006 6:27:58 PM
From: energyplay	Respond to of 30226

Re: URRE - I thik you are right, URRE will get bought. They have a lot of stuff in the ground, at one site they have a real problem producing. It appears they have lots of experience with In-Situ leching, however. According to Yahoo, they have about 70% institutional holders and about 1 % insiders - so they should be easy for a major company to take out. I would hope they would get more sites in production, and resolve their issues with the Navajo nation. If URRE could get production up in the 1-2 million pound per year range, wiht Uranium at $ 60, they would do well. Direct mining cost run about 14-16 per pound, I expect that to go towards $ 20 as hihger energy costs + inflation work affect equipment prices. Note only about 52 million shares out, we might see cahs flow (optimistically) about $1.00 a share. If we figure a multiple to cash flow of 6 to 10 times, that mean a $ 6 to $ 10 price range, and the stock is at the low end of that right now. That's why I have sharply cut my position as the price has soared. Longer term they could produce > 2 million pounds per year, but I agree someone will buy them before then. If I were CCJ, I would buy them right now, I think some of the projects URRE has can be accelerated with just money, not waiting for permits. >>>There have not been any Uranium miners bought since the Cigar Lake information came out - so what sort of price would a current PRODUCER with DEVELOPED & permitted uranium in the ground go for ? With the very low insider holdings (1%), how does URRE hold out for a better price ? My worry is they will go cheap to the first decent offer. By the way, look at a chart of URZ, which is AMEX listed, to see some parabolic "irrational exuberance" I have been triming that position (wish I had held a little longer) also. Note that URZ has currently NO PRODUCTION, but that very powerful ingredient, HOPE ;-)