“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 …

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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

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

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… Read More »

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Anonymous
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Anonymous

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

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
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👍7785

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

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… Read More »

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Anonymous
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Hi Engineer79your uranium play9. 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 MCPP2. Uranium Resources Inc. (URRE.OB) 7.13 MCPP3. 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 MCPP2. Khan Resources Inc. (KRI.TO) 2.71 MCPP3. Paladin Resources Ltd. (PDN.TO) 17.54 MCPP Uranium miners with… Read More »

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Engineer79
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Engineer79

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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Anonymous
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Anonymous

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?

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Engineer79
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Engineer79

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.

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Anonymous
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Anonymous

Engineer 79,
I would be very cautious with URME. OTCBB. Check out the report on stocklemon.com.

Anonymous
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Anonymous

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… Read More »

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smiling2bank
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smiling2bank

The average consumer will not understand volts, amps, or power factor. Consumers will buy any product if the sales pitch is good. Hmmmmm…. Sounds a lot like Investors will buy any stock if the sales pitch is good. And that is why I am here at the Gumshoe. To sort out fact from fiction. Thanks, Gumshoe.

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Steve
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Steve

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… Read More »

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Joseph D. Pavia
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Joseph D. Pavia

I would like to obtain a copy of the free report re: The DeBeers of Yellowcake

thanks much

joe

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Don
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Don

you guys missed a promising uranium play..bluerock resources..BRD.V…yes I have a small stake.

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ravindra kumar meena
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ravindra kumar meena

plz mail me uranium mining and dealing companies name listed in india stock exchange.

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Darren
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Darren

Hi, I am looking into start investing into Uranium stocks. I don’t have much experience. What stocks would you recommend to buy ?

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Robert
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Robert

Me too Darren I would like to know myself