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

To: Chuckles_Bee who wrote (9142)	3/14/2007 7:48:47 AM
From: TheSlowLane	Respond to of 30335

Well, part of the value of this thread should be to identify the companies that are worth considering. I think we've been doing pretty well. I agree that investors need to be careful, not just to identify the right companies but also to build positions carefully and avoid buying into a short-term top. Most of the companies are considerably cheaper now than they were a week ago or so.

To: Chuckles_Bee who wrote (9142)	3/14/2007 11:03:12 AM
From: AuBug	Read Replies (1) \| Respond to of 30335

Definitely a bubble has formed in many uranium stocks. It feels the same as the land rushes after Voisey's Bay and Ekati. It will end badly for the stocks that don't have anything worthy of being mined. I expect a big correction this year to shake out the weaklings and then a focus on companies with economically viable uranium deposits. May be time to step aside.

To: Chuckles_Bee who wrote (9142)	3/14/2007 4:15:26 PM
From: Gus	Read Replies (1) \| Respond to of 30335

The cautionary points in this article are worth heeding, but the fact remains that the market will always keep on throwing more than enough money at these companies until the uranium supply and demand deficit is reasonably solved. That's what markets do. Before the China-induced crash several weeks ago, Sprott estimated the total market capitalization of all the publicly traded pure uranium companies around the world at around $45-$50 billion. If you take out CCJ, USU, SXR and DML, you're looking at something closer to $20B in total market cap being awarded to companies, most of which will most likely not produce any uranium. That's hardly a bubble, though. I still remember, as I am sure you do, when a dotcom IPO would shoot up over $10B in market cap in one day. Now that was a bubble! And even then it lasted much longer than most people expected.