by Travis Johnson, Stock Gumshoe | April 21, 2007 1:45 am
I may as well have called this post, “another frickin’ uranium[1] teaser” — it’s getting a little ridiculous right now.
I think we can probably count all the investment newsletters that aren’t trying to jump on the uranium bandwagon on one hand.
But hey, there’s no denying that uranium is in a bull market (though how long it might last, or where we are in the bull, are certainly open questions) … so let’s look at another one.
This one, along with a suggestion as to its solution, was forwarded by an anonymous reader. He got it from Elliott Gue[2], who runs a newsletter called Energy Strategist[3].
And right now … for a limited time, of course … he’s “convinced his publisher” to offer a sale on the subscription, so you can get it for just a hair under $600 a year.
And what are his bona fides? He says he recommended Cameco a while back … and if you needed a newsletter to advise you that Cameco was a good stock to own if uranium prices were likely to climb, perhaps he would have been a good person to pay. Apparently, his newsletter cost $1700 a year before this price break, though, food for thought. The point being, Cameco is not exactly a hidden gem or a secret discovery like many of the newsletter advisors claim.
Anyway, so what’s the hot stock (or the one he gives clues about, at least) that this dude wants you to buy right now?
He only gives one real clue, but it’s a doozy:
“I recently found another small uranium mining company for my subscribers–Cameco bought a 20% stake in it. The best is yet to come as we get set to ride this mega-winner all the way in 2007!”
So what is it? Well, according to my reader … and I’ve checked the facts, so I’m pretty sure he’s right, this company is …
Unor, Inc. (UNOFF.PK, UNI.V if you trade with our friends in the frozen North.)
Don’t know a lot about this little guy, it’s a fifty cent company. They have an exploration program in Nunavut, and a joint venture with Cameco, and recently closed a secondary offering that gave Cameco that 20% (well, 19.5% … I guess it’s OK to round).
They actually have a more complicated history with Cameco, too, since it sounds like many of Unor’s properties are optioned from Cameco … so that may be worth looking in to. They might even end up finding some diamonds[4] (literally) in the rough as part of their Canadian exploration, so that could be exciting — but there are a lot of Canadian diamond miners these days, many of whom I’m sure have more promising kimberlites under the bit than Unor if that’s what you want. If you want to go back a bit, they changed their name last year from Hornby Bay Exploration, so you may see some stuff under that name.
To tell you the truth, I’m so overwhelmed with the number of these uranium companies that I have no idea which ones have any downside protection if the market for the metal tails off — I’ll keep poking around in the other teasers for uranium companies, too, but I’ve got to say I find it hard to believe that all of these juniors are going to grow up and make money … too many of them seem, on the surface, to be just scooping up the rights to old mining areas from the last uranium bull market 50 years ago and hoping that they’ll make money just by getting in “early.” Someone will probably get rich on this, but I’m guessing it won’t be me — if there’s more uranium wisdom among the great collective intelligence of Stock Gumshoe readers, and I’m sure there is, please share!
Source URL: https://www.stockgumshoe.com/reviews/energy-strategist/hot-uranium-stock-to-buy-now/
Copyright ©2024 Stock Gumshoe unless otherwise noted.
bought this stock when it was mentioned by Gue last August… am still waiting to make any money on it. I have several other uranium stocks that have risen anywhere from 25 to 300% in that timeframe.
I have not investigated this one, but what I can tell you is that there are about 600 so called ‘uranium’companies curently listed on the major (and minor) exchanges and there are less than a dozen who will ever bring any uranium to the market in the next ten years. The permits need to mine uranium are far more rare than the mineral itself, which is not a rare element at all. If you want to invest in ‘the uranium bull’ and you don’t want to get stuck with a dog, then the best action to take is buy companies that have permits and are actually mining rather than exploring. Cameco, being the biggest of them all, is probably the safest bet.
Cameco isn’t the best choice. Its already trading at a P/E of 92, meaning the fact that its the largest producer of uranium is already factored into the market.
I’d say you’d have more luck if you look for some production data for uranium. That will tell you which companies will actually make money in this uranium bull market. Then judge all those companies based on production, P/E, etc.
On the contrary Cameco IS THE BEST CHOICE. It is the EXXON of this sector and the most stable financially. Buy anytime it is below $20. It is a long term investment.
There will come a day when Uranium goes through the roof and when it happens,
those of us that have been slowly and consistently socking these stocks away, (CCJ, DNN, URRE) stand to make a fortune. I am planning NOW to wake up to $100,000+ when it hits. And it is not a matter of “If” but “when.”
David ; I have no opinion of ‘best choice’ but I think it likely lowest cost producer will do well,keeping in mind that if/when Thorium reactors become commercially feasible Uranium profits will be limited.
Here are the uranium miners that actually sell uranium or will in the next several years. These should be able to make a profit from their mining. The first 10 are from an exhaustive 6 month study on the uranium industry:
1. UR Energy (URE.TSX)
2. Energy Metals (EMU.NYSE)
3. SXR Uranium One (SXR.TSX)
4. Paladin (PDN.TSX)
5. Cameco (CCJ.NYSE)
6. Denison Mines (DNN.AMEX)
7. Kilgore Minerals (KAU.TSX-V)
8. Power Tech Uranium (PWE.TSX-V)
9. Uranium Energy (URME.OTCBB)
10. American Uranium Corp. (AUUM.OTCBB)
Here is another that I found and invested in:
11. Uranium Resources (URRE.OTCBB)
I have shares of all of these. Unless they find a replacement for uranium, the big nuclear power plants will have to pay the high price for the fuel. They will not shut them down, so the BULL market should last a few more years. Buy now because it is still early in the uranium bull market.
Hi Engineer79
your uranium play
9. Uranium Energy (URME.OTCBB)
is far away from becoming an uranium miner. They have only a big database, that’s all.
After studying all the facts of many uranium companies, these are my top list:
Remark: MCPP = Market Cap / U3O8 lbs.
Uranium miners with production
1. Energy Resources of Australia Ltd. (ERA.AX) 6.34 MCPP
2. Uranium Resources Inc. (URRE.OB) 7.13 MCPP
3. Uranium One Inc. (SXR.TO) 8.78 MCPP
Uranium miners with near term production (production in 1-2 years)
1. Energy Metals Corp (EMC.TO) 2.60 MCPP
2. Khan Resources Inc. (KRI.TO) 2.71 MCPP
3. Paladin Resources Ltd. (PDN.TO) 17.54 MCPP
Uranium miners with advanced exploration
1. Pele Mountain Resources Inc. (GEM.V) 1.73 MCPP (This looks very cheap)
2. Forsys Metal Corp. (FSY.TO) 14.21 MCPP
Uranium junior explorer
1. Stathmore Minerals Corp. (STM.V) 7.23 MCPP
2. Uranium Power Corp. (UPC.V) 4.17 MCPP
For comparison:
Cameco Corp. (CCO.TO) 31.03 MCPP
All other so called uranium companies are far away from production or overvalued (MCPP greater than 30) or have only very small resources.
Good information on your uramiun stocks.
I originally had USEC at around $10, then sold when they said their enrichment plant was overbudget and behind schedule. Now is it at $20…..
I had UrAsia, then it was bought by SXR. I had International Uranium, then it was bought by Denison. I also had Uranerz Energy Corp. (URZ) but sold when it doubled. It too, only had old leases, no production.
I’m a very small investor with not a lot of time or expertise to research the intricacies of a given industry. So, I bought Uranium Participation (U.TO). They’re a U holding company, so no dividends, but it’s a way to play in the commodity without messing with futures markets. Thoughts?
I did not buy that one. I think it will go up with the price of uranium though. I have over $20k in the uranium stocks now.
Engineer 79,
I would be very cautious with URME. OTCBB. Check out the report on stocklemon.com.
Uranium production isn’t really in nearly as dire a situation as many have made it out to be. After all, there have only been a few slight deviations in actual production of uranium over the past decade.
So what’s all the fuss about? There are a lot of factors that need to be considered, but only one that should matter to you as an investor. Sure, Russia, China, India, and the U.S. are proposing dozens of new power plants to be built, but those are just promises.
On top of that, there are now four hedge funds worldwide that buy uranium on the spot market and store it to speculate on the continued price rise of the radioactive metal.
The most important factor is the actual underlying demand for uranium from end users. With uranium prices on the spot market down for the second straight week, a pound of uranium now only sells for $130 a pound and the spot market is starting to come back to reality.
Due in large part to the drop, investors are running scared. After all, if we fall back to the long-term delivery price of uranium around $95 (the price most power plants and enrichers actually pay), hundreds of uranium stocks will be completely worthless. Many of them are the microcaps and smallcaps that are now being hyped.
We’re nearing the end of the uranium boom when everything just goes up and up. Now, you’ve got to be selective about which investments to make. It’s going to be a veritable minefield for uranium stocks and you’ll have to be extremely selective.
As a rule of thumb, if a prospective mine won’t be able to produce uranium for less than $80 a pound, then chances are there will never be a mine at all.
Any ideas on this teaser from Richard Young’s Investor Place Newsletter?
The DeBeers of Yellowcake
Fortunately, North America is wealthy in uranium.
One mine, in fact, has access to so much of the world’s uranium, it is The DeBeers of yellowcake! Add it up: A monopoly position…in a natural resource set to double. The stock trades at 40 times estimated 2007 earnings per share, which is not cheap. But also, you aren’t buying Colgate-Palmolive.
Action To Take
The first step is to buy a small stake in this North American uranium mine. This stock is up over 140% in the past three years, so we’re off to a good start in our million dollar quest.
I want you to do your own investigating before you invest, naturally. I have put the case of uranium and this one company together in an urgent Intelligence Report briefing called The DeBeers of Uranium.
The report is FREE–download it here.
I would like to obtain a copy of the free report re: The DeBeers of Yellowcake
thanks much
joe
you guys missed a promising uranium play..bluerock resources..BRD.V…yes I have a small stake.
plz mail me uranium mining and dealing companies name listed in india stock exchange.
Hi, I am looking into start investing into Uranium stocks. I don’t have much experience. What stocks would you recommend to buy ?
Me too Darren I would like to know myself