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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (146898)	3/18/2011 3:31:52 PM
From: Jacob Snyder	3 Recommendations Read Replies (2) \| Respond to of 206086

CCJ, Cameco: Bought a small opening position, at $29.50 today. My reasoning is similar to the "disaster stock"* buying I did in BP last year. I think China and India and other emerging nations will, after a pause, resume their plans for a nuclear buildout. I am not counting on anything, from the U.S., Japan, or Europe. I'm guessing the stock is close to bottoming. There has been immense volume this week, after a huge gapdown. I am impressed, that the stock is up 5% today, while the market is flat. Nuclear Fallout Sinks Uranium Mergers 28% Below Offers: “You’re offered fundamental upside if you believe the sell-off in the uranium stocks is overdone,” said Andrew Ross, partner and global equity trader at First New York Securities LLC, a New York-based proprietary trading firm that bets on stocks, commodities and derivatives. “The Chinese are taking a very long-term view of their energy needs and they have to incorporate some element of nuclear power into their plans. You just have to overcome the headwinds of the Japanese issues.”...China is building at least 27 reactors and has 50 more planned...Uranium has retreated 27 percent this week to $50.01 per pound of U308, the tradable form of the metal. noir.bloomberg.com ...the world’s largest uranium producer, Cameco (NYSE: CCJ) held a conference call (.pdf) to address the fall-out from the possible melt-down occurring at the Japanese nuclear reactor. In near defiance, the CEO reaffirmed the company’s guidance for the year while also commenting that it has no plans to slow down its so-called “double-U” strategy – its plan to double its uranium production by 2018. seekingalpha.com Cameco has several advantages over its competitors: * It owns several of the world's highest-grade uranium deposits. The company's McArthur River mine in Saskatchewan boasts ore grade concentrations 100 times higher than the industry average. * With demand greatly outstripping mine production, producers like Cameco have a stronger hand to play at the bargaining table and have negotiated more favorable contract terms with utility customers. * Supply-and-demand dynamics increasingly favor uranium producers. As secondary sources dwindle, sustained high prices will be necessary in order to get mine investments to close the gap between consumption and production. seekingalpha.com 3Y chart: Message 27247289 47% gross margin 0.20 debt/equity * "disaster stock" investing, requires a special attitude. Think of me as a vulture, soaring far above, barely moving a feather for long periods, constantly scanning for some wounded creature to collapse, so I can swoop and feast.