“Hot Uranium Stock to Buy Now”

By Travis Johnson, Stock Gumshoe, April 21, 2007

I may as well have called this post, “another frickin’ uranium 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, who runs a newsletter called Energy Strategist.

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 (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!


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Anonymous
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Anonymous
April 21, 2007 6:42 pm

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.

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Anonymous
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Anonymous
April 21, 2007 7:29 pm

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.

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Anonymous
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Anonymous
April 22, 2007 1:28 am

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.

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David A
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David A
February 22, 2014 11:07 pm
Reply to  Anonymous

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.”

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arch1
Member
February 23, 2014 12:06 am
Reply to  David A

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.

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Engineer79
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Engineer79
June 15, 2007 3:36 pm

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.

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Anonymous
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Anonymous
June 16, 2007 9:31 am

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.

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Engineer79
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Engineer79
June 22, 2007 9:31 pm

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.

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