To: koan who wrote (5788 ) 12/31/2006 6:59:17 PM From: TheSlowLane Read Replies (1) | Respond to Glad you liked it, Koan, welcome aboard! I'm almost halfway through a book I just bought, "Commodities Rising: The Reality Behind the Hype and How to Really Profit in the Commodities Market" by Jeffrey M. Christian of the CPM Group. Here are a couple of paragraphs that I thought were pertinent to this board:“Earlier I mentioned my propensity to buy a range of types of equities in a commodity that I find interesting. Let’s take uranium as an example. Uranium prices have risen sharply over the past few years, but one cannot easily invest directly in uranium. It is not traded on any exchange, and purchasing physical uranium can be difficult. A few uranium investment funds have been started, but most investors buy uranium exposure by investing in uranium stock. There only are a few major producers of uranium around. Most uranium is produced by diversified mining companies, and their share prices do not accurately reflect changes in uranium prices. There are a couple of companies that are in production whose shares can be purchased, such as Cameco. Additionally, there are dozens of uranium exploration companies. An investor interested in uranium could buy some shares of a producer and also shares of some exploration companies. “…we will trade around a long-term core position. If we have a long-term long position in a given commodity and the price rises sharply, we will seek to capitalize the gains, to lock in profits. We may still be expecting higher prices, but we also may expect prices to fall back in the interim.” amazon.com
