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

To: ms.smartest.person who wrote (11298)	5/24/2007 6:05:51 PM
From: energy_investor	Read Replies (1) \| Respond to of 30204

Far be it for me to argue with anyone from Resource Investor ( WTF do I know :-) ) , but I am not entirely convinced that this is going to lead to a huge increase in the share price of WUC. Here's a paragraph from the official press release : "The Company views this alliance with Cameco as a very positive development. It allows Western Uranium to focus its efforts on exploration and development with Cameco supplying financial and operating expertise to advance projects to production if warranted. We believe it is a strong endorsement of the technical and management capabilities of Western Uranium Corporation," said Edward Flood, Western's Chairman of the Board. " This struck me that the alliance is defensive in nature: WUC wants to stay independent and to be able to pursue exploration and Cameco is making an investment to keep its emerging competitors (DNN, SXR) from acquiring some cheap assets that may well be developed in the future. If Cameco needs to develop these assets (e.g., Cigar Lake doesn't get rehabilitated on time), then it will be able to utilize them. I do believe that the alliance is a strategic win-win situation for both parties and makes a lot of sense. I had a position in WUC, but gradually have been reducing it and re-deploying the assets elsewhere. I actually sold the last tranche yesterday on the news . I have been switching assets to focus much more on companies that have a clear path to developing their uranium assets or are either close to or actually producing yellowcake. Nothing in this announcement led me to believe that WUC will be producing anytime soon, which is why I sold the last of my holdings. Don't get me wrong, I think WUC is a terrific company, by the way, with excellent and cheap assets in the ground and with very capable people. It will be interesting to see what develops from the relationship with Cameco....... Just my 2c (as I said, WTF do I know... ) Cheers Energy_Investor