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Uranium resurgence

Discussion in 'Commodities' started by prs, Oct 27, 2010.

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  1. prs

    prs prs

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    Is it my imagination or is Uranium quietly making a resurgance. Seems there is becoming a greater demand for the resource and there is a bit of a spike in the cost price of the commodity. Anyone with any thoughts?
     
  2. DB008

    DB008

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    Re: Uranium resurgance

    My thoughts, YES.

    Have a look in the Commodities thread and look for the Uranium and Thorium threads. There is a fair amount of info on Uranium so you should be able to get a better understanding of what people on this board are thinking.

    Happy trading
     
  3. DB008

    DB008

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  4. prs

    prs prs

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    You are correct DannyBoy but I am encouraged by the movement in MTN share pricing and some others in U308 and wondered whether some out there were aware of something that is prompting a sudden rise in SP
     
  5. Southern X

    Southern X

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    I'm looking at a commodity price at U$52.00, up U$2.75 over the past week. From a technical perspective the chart has put in a clear bottom.

    First, who is buying? Could a significant number of purchases be from hedgies; you remember what did last time, ie drive the price into the sky, then bail. Well for them they've got a long way up to go to realize BIG profits. So the spot price is very cheap for now.

    Second, as Buffet is fond of saying, "be buyin' while others are cryin'". This sector was truly HAMMERED. So I dipped my toe in the water with a WA near term producer, Mega Uranium, MGA:TSX.

    I'm looking to increase my exposure in this space. To that end if anyone has "real" thoughts on either ASX or TSX explorecos, near term producers, or new producers eg. WCU:ASX/WU:TSX-V(?), let's talk.

    My stocks owned are: MGA, NTU. BMN:ASX, is a pricey producer but may be a winner; EXT is solid. What about MRU, TOE, DYL...etc.

    Thanks. Now let's make MONEY!

    SX
     
  6. barney

    barney

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    Howdy SX .... Have you put your microscope over PEN lately? Might be worth a look ;)
     
  7. Southern X

    Southern X

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    Thanks Barney, will do over next week. Als will be looking at RSC:TSX, Strateco.

    This though, is exactly what I'm talking about. To wit: some months ago PEN popped onto my radar. I can't even remember why, and soon after forgot about it. (I was busy in the REE and Au plays.) This was a space, Ux, I prowled about in during the pre-bubble bursting days. I see the potential here, and I WILL NOT be a bag-holder this time!! (The tax-loss selling was mitigated by a big swig of very good wine with each click of the sell button.)

    There are gems in this sector, holders of PDN and ERA need not post. (I would only consider them if my strategy were to employ a barbell approach, ie/eg. PDN or ERA on one side -- moderate growth/safety -- and explorecos on the other -- DANGER/REWARD).

    Let's make Mo' Money!

    SX
     
  8. Southern X

    Southern X

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    Further to PEN....

    Their audio broadcast points directly to a capital raising. To me this, at this point, may be pointing directly to a buying opportunity of a near term producer. Needs more research though.

    SX
     
  9. DB008

    DB008

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    I got in on DYL, PDX and UXA about 2 weeks ago.

    ERA is also another one. l hold RIO, which owns ~61% of ERA.

    I have posted in another thread that l believe that the big U will be in demand as China is building more U-Power plants.

    http://www.washingtonpost.com/wp-dyn/content/article/2007/05/28/AR2007052801051.html

    More info here too.
    http://www.world-nuclear.org/info/inf63.html


    Judging by the above report, it is clear that there will be a huge Uranium demand.
     
  10. barney

    barney

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    SX,

    PEN have already completed their recent capital raise. (PENOC options). The recent appointment of Rockbury Capital is to source a debt funding arrangement for the upcoming mine to be built in Wyoming.

    The latest Hartley Report will give the best quick rundown on the companies potential ...... once the mine permit goes through, the instos will start to get interested in PEN, and the share price could see an exponential re-rating imo.

    ps I hold so I am obviously biased :D

    http://www.peninsulaminerals.com.au/images/peninsul-134--aixoo.pdf
     
  11. DB008

    DB008

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    There is an article in the Financial Review this weekend (13/11/10), on the back page about Uranium. Interesting. Very bullish outlook!

    It goes on to say that while almost all other commodities have risen "significantly", Uranium has been sluggish this year.
    There are also some 400 'odd Uranium Power Plants world-wide with another 40 marked for construction.

    Companies mentioned were BHP, RIO, PDN.


    Happy trading
     
  12. Southern X

    Southern X

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    I've freed up cash (thanks LYC, ARU, ALK) over last month for Au, Ag (don't know a superb, eg. BCM:TSX-V, ASX play), and Ux.

    Barney shared a great pick (PEN), but I missed it for various reasons: thought they needed money: I've haven't got a clue about how to trade equities under $0.10, and; they have a $0.09 target.

    My list of Ux has been whittled down to: DYL, WCU (they too need money), MRU (anyone know of another Tanzanian play?), and TOE. Not pursuing BMN (great land position around PDN, but the cost of extraction??), and AGS (legal issues, but worth the Au punt?).

    Hopefully my decision is settled while the market's pounding most everything because Ux might go nuts again and I want to buy this dip.

    SX
     
  13. DB008

    DB008

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  14. Southern X

    Southern X

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    RIO's position in ERA takes ERA it out any takeover premium.

    I would only invest in ERA or PDN from a barbell strategy. In short, I believe Ux has definitely bottomed. To play it safe, but still take on risk, in an upward moving commodity, I'll buy heavyweight PDN/ERA, and on the other side a risky exploreco or two. Therefore if I'm wrong on the exploreco side the big fellas will cushion/hedge my loss. IF, IF I'm right then small % gains on the ERA/PDN side while large % gains on the risk side.

    MRU might've been the Tanzanian play I was hunting for, but in hunting their may be others?? Thanks Dannyboy.

    SX
     
  15. Verve

    Verve

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    Hmmm. Not sure about ERA. Bought in May, and then reports came through of the Ranger Uranium mine coming to the end of its useful life. It's been around for 34 years. I think that any SP rises these days is fairly superficial, i.e. not born of any great productive outcome. Anyway, we sold in October at very small loss, and put funds to better buys, and already have made up for the losses and more.
     
  16. tronic72

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  17. tronic72

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  18. tronic72

    tronic72

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  19. enigmatic

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    I have been watching Uranium for a couple of months now and have been impressed by the rapid increase in price now up to 70$/lb
    could be a good time to take a punt on a Uranium Junior.
     
  20. barney

    barney

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    That brings us back to PEN ;) ....... possibly the best U junior anyone will find at the present moment ...

    Currently in a consolidation phase after a stellar rise of late ........ Anyone able to pick up some stock at the 10-10.5 cent level while the short termers are cashing out may be well rewarded over the next couple of years !!

    ps ... I hold ... I am biased ;) ..... but this one has the making of a serious player of the future.
     
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