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

To: TheSlowLane who wrote (9291)	3/18/2007 8:09:31 PM
From: russet	Read Replies (1) \| Respond to of 30345

The most important item when discussing Uranium stocks is where the price of Uranium is headed as the prices of the stocks are directly correlated with the Uranium price. There are lots of sell side analysts and brokers pumping them up and selling you the story that Uranium prices are headed higher and for the short term it looks like that will continue. But why does it matter at all what stocks I'm in and why? And why is it the first time someone has a negative thought or two that they must be short? Is that not just an attempt to discredit someone? As it happens I am in a few uranium stocks that will be drilling up resources in the next few months, but I have a very twitchy trigger finger on the sell button because I don't believe the resource market can ignore what appears to be happening to consumers in several countries that had access to cheap and easy money for almost a decade. Perhaps relevant is that last year at this time I was 50% invested in various Uranium stocks. That is no longer true. I now mainly in cash deliberating what to do. I want to find out how the tightening of global credit policies affects the consumer before I commit any more money in the stock market. I own, UPC, slowly selling the last of it off. Had a great pump by many(your sprott friends incl) and has a chance to convince Rio to de mothball their Sheep Mtn plant where their resource is. UMN, slowly selling the last of it off. It is a near term producer in a country with shorter timelines to production and is heavily promoted by both Sprott's and has some interesting land JV's with a partner that I have some good info on. FRG/AXU, holding for now. Their Labrador holdings show some very high grades and near surface showings. They have a good resource drilled off and very good chances to increase that by several multiples. They have an ambitious drilling program to increase resources with low risk. CCO, holding for now. I think Cigar Lake is a pretty easy fix, just a bit time consuming as the initial part is drilling from surface. I can't believe the vast amount of bullchit coming from the sell side analysts that this asset will be abandoned,....this was the primary catalyst for the run in U stocks from October to now. Once the small area that suffered the collapsed ceiling and water infiltration is sealed off construction of the mine will re commence and they will freeze the ground around the mining activity to lessen the chance that water can infiltrate into the mine again. I own U and the two U wts because these don't rely on company specific problems and their stock charts continue to look good. I own several spec plays exploring in different countries but have sold down to freebies as the charts leveled out or turned down in the last few months. There are very few charts left that continue to push up. I don't think much of Thelon basin plays because I think it will take a lot more money and a lot more time to get a mine up there if they ever do. There are differences between the Athabaska basin and the Thelon one that in my mind (and many academics studying the two) make Athabaska type high grade larger tonnage deposits unlikely in Thelon. The costs to develop would be significantly higher in Thelon as well. I think most Athabaska plays will come up with little this year because they are difficult to home in on with the drill. The easy ones at surface or near surface have probably been found leaving the deeper ones which take a lot of money and patience to find. It's quite expensive to hire the technical wizzards and equipment to home in on them, and many crappy holes must be drilled before someone gets lucky. As long as money is flowing to the juniors there is hope, but most will luck out for several seasons. So the best plays will be those ones that have already delineated resources and can quickly add to or develop with existing infrastructure in place. I should point out that I also believe in the end of winter, spring selloff on commodity markets. I sell the vast majority of my positions into the end of February before the PDAC as experience over the last 20 years shows 90% of the time I come back from PDAC poorer than when I went if I don't sell down to high cash positions, and this year was no exception. Off topic I guess, I own several nickel and gold plays, but I'm selling out of the nickel although not the golds yet. There is this wonderful theory that is driving many epithermal gold plays in the so-called ring of fire around the pacific ocean. The thought is that silver veins are at the tops of these structures, and lots of gold and base metals can be found below the water table and deeper closer to the source structures. This theory is driving a lot of the speculation in junior plays, particularly in Mexico these days. So how did I do,...are we in focus or out of focus?