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Wednesday
Nov012006

Eagle Plains Resources Limited: 01 November update

Eagle Plains Resources Limited, EPL on the TSX has experienced an increase of 30% since we first recommended it towards the end of July.

Follow this link for the latest update.

01 November 2006
Monday
Oct302006

Fronteer Development Group: Update

The Monday morning debate was fought with great passion, as you would expect. However, the decision to sell half or any of FRG was over ruled.

Why? Well the belief that gold will continue heading north and that no one could quit see a reason for a correction in the price of uranium.

So, it’s back to hold on to this investment for now.

30 October 2006
Saturday
Oct282006

FRONTEER DEVELOPMENT GROUP: Take a profit?

FRG is now showing a decent paper profit so the question that we must consider is whether to take a profit or not?

If we look at our original article about Fronteer you can see that we were buyers at $4.70 on the 14th July 2006.

FRG closed on Friday at $6.50, this rise in the stock price equates to a paper profit of 38.09%

The chart is clearly giving us some overbought signals as you can see.

frg28oct06


However there are a myriad of other influences to take into consideration including the upcoming US elections that in our opinion have played a part in keeping gold in check. This in turn has an effect on FRG, as it is both a gold and a uranium play. These elections will be over in less then 2 weeks time so it may be wise to stay with this uranium stock.

Back to the chart: it looks to us that we could take a short term profit at this point and buy back in when the price corrects to around the $5.50 level. We know that this is only a difference of one dollar and question the wisdom in chasing such a move! The stock price does appear to have support at its own 50DMA so that is where we think this small correction will end.

Thoughts: We could sell half of our holdings in FRG on Monday at $6.50 and hold onto the other 50% just in case we have timed this move incorrectly. We are of the firm belief that this stock has a long way to go and FRG is in our humble opinion a serious takeover target, so coming out is fraught with risk. However the indicators point to a correction and on this occasion we are considering how to play it.

So there we are, the stage is set for a good ding-dong in this office on Monday morning.

If you have a view on this situation then please feel free to fire it in to us.

As always don’t go too mad either way with any one stock.

Sleep tight and relax this just may give you a chuckle.

28 October 2006
Thursday
Oct262006

URAMIUM: at $100.0, but when?

We have predicted before on this website that uranium will hit $100.0. We are not alone in this as a small number of savvy financial letter writers are also putting their reputations on the line with similar thoughts.

Sprott Asset Management, Grandich, James Dines were onto uranium in the very early stages of the uranium bull market. These people are heavyweights in our profession so it really does pay to listen them. Sprott have recently suggested that uranium could go as high as $125.0.

Our stance has been to limit our efforts to no more than a dozen uranium stocks although the Watch List seems to get bigger by the day. Some of the miners we analyse have stories with an awful lot of “ifs and buts” to them and as you know we do prefer something with a little substance to it.

Timing, are yes! Well it’s said to be 90% of any decision and we agree. Uranium is developing its own momentum and that momentum is starting to accelerate. Scan the articles on this site as you see it is littered with “and uranium goes up again” To our way of thinking this acceleration will have an expediential effect on price rises. If you go to market and the price is $46.0 then a few weeks later it is $50.0, and last week it cost you $56.0, you have got to be concerned.

Most of the miner’s wont hedge so you cant lock them in for future deliveries. Even Cameco has contacts whereby it can defer deliveries. So, the current water problems that they are experiencing at Cigar Lake could actually work in their favour. After all, why sell uranium now when you can probably sell it in 3 months time at a much higher price?

Back to timing. This acceleration will cause the uranium users to try and stockpile some uranium and protect themselves from future prices rises. This strategy may help to ease the pain but with consumption outstripping supply that pain is most certainly going to come.

Our indications are that we could see uranium at $75 by the end of the year, with a spike to $100.0 by mid summer 2007. There we go heads on the block. It may give you a chuckle but please make sure that you have a few uranium stocks in your portfolio because they are going to fly. If you don’t like our selection that’s fine, follow your trusted analyst and buy a few of their recommended stocks. Be careful though as this is a thin market which could be subject to “Pump and Dump” scams. A number of uranium stocks have risen sharply recently some with massive increases in volume over just a few days? What happens when this type of buying activity subsides? Damn right, the stocks could well retreat just as quickly. When a stock spikes up try to find out what is behind the move, a 50% increase would worry me when the volume is uncharacteristically high. Larramide for instance moved up 9.13% yesterday, however the volume was 383,000, which is fairly close to its norm. On the other hand Uranium One has traded 20 million shares in 3 days, way above its norm, so don’t buy it now, wait for the euphoria to settle down and revisit it some time in the future.

We could be wrong about some of these dramatic moves and the market could be telling us that this really is the start of something big!

26 October 2006
Saturday
Oct212006

ESO URANIUM CORPORATION: Time to buy?

esologo1

ESO Uranium Corporation has fallen from its highs of $1.50 by 2/3 to 0.40 and recently made an encouraging recovery to the $0.50.




We have had a number of enquires regarding this stock over recent weeks so today we will post what we have.

esochart21oct06

This stock has been on our Watch List for some time however we have not bought it – yet.

ESO trades on the Toronto venture Exchange under the symbol ESO. It offers both exposures to uranium and to gold through its current projects.

On the uranium side ESO Uranium has close to one million acres of prospective uranium claims located in the Athabasca region.

On the gold side ESO has approximately 27000 acres of the Casa Berardi Deformation Zone in Northern Ontario. A number of geophysical surveys have been completed including high quality magnetic and electromagnetic surveys. Basal till sampling returned gold values of up to 55 g/t in heavy mineral separates, so ESO could be close to a sizable discovery.


The management team is littered with highly qualified and experienced staff, including Bob Beckett who graduated from Oxford University with a BA honours degree in Geology and has over thirty years of successful mineral exploration, development, and mine operations experience.

So far so good.

However we need to bear in mind that this is a fairly small outfit as we can see below the Market capitalisation is around $16 million. The volume of shares traded is a little on the thin side but then again this applies to a number of uranium explorers these days.


Shares issued 33,359,881
Fully diluted 42,414,322
Market Cap $16,000,000
Current Share Price $0.45 - $0.65
52 Week High-Low $0.41 - $1.48

Geographically and geopolitically we are on good ground in Canada.

So what bugs us and why haven’t we made an investment into ESO Uranium Corporation?

Well just take a look at the chart and compare it to the progress made by uranium. Yes it’s true that there are a number of uranium stocks that also look sluggish when compared to uranium but ESO has degenerated badly since making a high of $1.48. So we watch and wait. That wait may be over as we can see the beginnings of a recovery as the stock price has moved up and crossed over its own 50DMA, which is a good sign. It also looks like there is support forming at the $0.50 level, which is encouraging.

This may be a terrific opportunity staring us in the face but we need a little more convincing before we invest our funds in to ESO. We will continue to observe but don’t be put off by us, we have been wrong before.

Good luck if you do buy ESO we wish you well. And, as always please let us know how you get on.

21 October 2006
Wednesday
Oct182006

Crosshair Exploration and Mining Corp: Update

President and CEO Mark J Morabito has recently issued some interesting news regarding Crosshair’s progress.

The Croteau Lake drill results are looking promising where they have defined three new priority target areas for drilling early in 2007 during the Company's planned winter drill program. Numerous other uranium radiometric anomalies are currently being evaluated in order that they can be advanced to the drilling stage.

The Armstrong occurrence, located close to the Company's Armstrong base camp, has returned an average grade of 0.303% U3O8 from 17 grab samples collected over a 200-meter strike length.

The Blue Star area covers a broad radiometric anomaly centred 5 kilometres northeast of the Moran Heights Zone. Assays from surface grab samples range from 0.068% U3O8 to 1.37% U3O8. Diamond drilling in 2007 will test several areas within the Blue Star anomaly.

The trading volume is pretty steady and the stock price closed yesterday at around C$1.92.

This kind of progress gives us great comfort in that this uranium explorer is getting on with it. Add this to the ever-increasing price of uranium and we are going places.

We will hold this uranium stock and try and accumulate more going forward as cash permits.

18 October 2006
Wednesday
Oct112006

United Kingdom Independence Party: Pro Nuclear energy

The United Kingdom Independence Party (UKIP) gathered at the weekend in the south of England to celebrate the election of their new leader Nigel Farage. A variety of topics were discussed as can be expected of a political party convention, one of which was nuclear energy. The feedback that we have is that UKIP fully supports the use of nuclear energy.

Again this clearly demonstrates to us that the wheel of nuclear acceptance is turning in favour of nuclear energy. Which in turn means that the demand for uranium will increase and those who hold uranium stocks will be favourably positioned.

UKIP is the fastest growing political party in Britain with its membership growing on a daily basis. They also have 14 members in the European government who are actively campaigning to get Britain out of the European Union and establish self-rule for Britain.


11 October 2006
Tuesday
Oct102006

URANIUM STOCKS: Portfolio update 10 October 2006

The webs only free portfolio of uranium stocks provides a quick update of our uranium investments to date.

The following is a list of our uranium stocks and our current strategy for investment:

1. Cameco Corporation – Hold
2. Rampart Ventures Limited – Watch
3. Uranium Participation Limited – Watch
4. Strateco resources Inc - Watch
5. Fronteer developments Group – Buy
6. Crosshair Exploration and Mining Corporation– Buy
7. Laramide Resources Limited – Buy
8. Energy Metals Corporation - Watch
9. Eagle Plains Resources – Buy
10. Mega Uranium Limited – Buy
11. Rodinia Minerals Inc. - Watch


Taking into consideration the way that uranium prices are progressively moving higher coupled with the well documented demand for nuclear energy we see no reason for the uranium stocks not to move higher and soon. The basic fundamental requirement of demand is growing every day. The recognition of that demand has been noted by only a few analysts and stock pickers. We are sticking to our predication of $100 per pound for uranium only now we believe that it will arrive sooner rather than later. We will do more research in this area and post our conclusions as to when we think that day will arrive. The predictions business is filled with uncertainty however with a modicum of common sense and due consideration of the fundamentals and technical analysis we believe that we can come up with a rough pointer regarding the $100 price tag. Uranium now stands at $55.75 per pound. Can she double from here? Yes. When? Watch this space!

Your comments and constructive criticism are welcome as always. So if we do miss something that you think will affect our deliberations then please feel free to send us your input. Our readership will also benefit from your insights whether you agree with us or not.

Good luck

10 October 2006
Thursday
Oct052006

RAMPART VENTURES LIMITED:Volume?

We have had some interesting mail regarding Rampart recently so we thought that we would take another peek.

Firstly our opinion on uranium remains the same, the fundamentals have not changed and in fact we believe that they improve on a daily basis. The uranium price activity clearly demonstrates that this is the case. Our challenge is to find a way to capitalise on these price movements. At uranium stocks we have chosen to invest our money into those companies that fit our criteria of being well managed etc, as we have discussed in earlier articles.

As for Rampart which is on our watch list we know that they have put out some good news lately. We also know that they have been adding heavy weights to their management team. This all bodes very well indeed for the future. However we have also been keeping a close eye on this stocks price activity especially the volume. The following chart which shows the date, Closing price, high and low price is taken directly from the TSX:

0.250 0.265 0.250 91,000
Oct 03 0.260 0.270 0.260 25,000
Oct 02 0.270 0.285 0.270 32,000
Sep 29 0.280 0.300 0.270 134,000
Sep 28 0.290 0.300 0.280 224,000
Sep 27 0.280 0.305 0.280 471,000
Sep 26 0.270 0.280 0.240 142,500
Sep 25 0.230 0.265 0.230 65,000
Sep 22 0.240 0.260 0.225 52,000
Sep 21 0.260 0.290 0.260 63,500
Sep 20 0.285 0.285 0.240 129,500
Sep 19 0.260 0.295 0.260 25,000
Sep 18 0.295 0.295 0.295 0
Sep 15 0.295 0.295 0.265 29,300
Sep 14 0.270 0.300 0.270 181,500
Sep 13 0.285 0.300 0.270 159,500
Sep 12 0.300 0.300 0.280 27,000
Sep 11 0.285 0.300 0.285 63,250
Sep 08 0.285 0.290 0.275 98,000
Sep 07 0.300 0.310 0.275 68,200
Sep 06 0.290 0.290 0.285 13,000
Sep 05 0.290 0.300 0.290 23,833
Sep 04 0.275 0.275 0.275 0
Sep 01 0.275 0.290 0.275 40,000
Aug 31 0.280 0.280 0.270 41,500
Aug 30 0.265 0.280 0.265 112,000
Aug 29 0.280 0.280 0.270 145,500
Aug 28 0.280 0.290 0.280 69,000
Aug 25 0.300 0.300 0.290 90,000
Aug 24 0.290 0.300 0.290 176,000

We can see that the stock price recently hit a high of $0.305 on the 27th September 2006. The volume that day was 471,000 shares traded, its highest volume for some time. Had the volume continued to increase then maybe we would have had something to get excited about, however it did not remain at this level and has since fallen significantly. On the 3rd October 2006 it traded only 25,000 shares and the stock price closed at $0.260.

We can glean from this that on a slow trading day an individual investor could drive Ramparts price up or down without needing mega amounts of cash.

Rampart in our view is the sort of uranium stock that you must be prepared to purchase and put at the back of the draw for a year or two. Don’t watch it every day it will drive you potty. However, if your aversion to risk is on the high side you could invest now before the herd and who knows you might hit it big time.

We are not buyers at this juncture but we will wait patiently and watch and assess the companies’ developments as we go forward.

If it is a favourite of yours and your gut feel says GO! Then it is up to you to follow those instincts or not.

Good Luck.

05 October 2006
Thursday
Oct052006

URANIUM: Price up again!

The price of uranium has moved up again from $54 per pound to $55.75 according to the UX Consulting Group. The price of Uranium is accelerating and would appear to have entered a period of increasing price momentum.

The end users have got the message, no nuclear energy without uranium so get out there and get it bought. The question that still puzzles us though is why are the uranium stocks so sluggish? Is this market so thin that the investment fraternity overlook it as too small to be meaningful? Is it lost behind the glitter of gold and silver?

Looking at the Uranium stocks we can see that Cameco is trading at a disappointing $34.31. We are not sure why this is as it would be the ideal vehicle for a fund management group to invest in. Then there is Crosshair that we have just bought which is also down slightly. Then we look at Fronteer Development Group and the price is up from when we bought it at $4.70 to $5.47 a rise of some 16%. However Fronteer has a gold element to it and maybe that is why it was attractive to the investment market. But gold prices are getting a bit of a hammering right now so one could be forgiven for expecting this stock to go lower.

We can only conclude that with the progress that uranium has made so far the uranium stocks must surely follow. So we will continue to buy as the opportunities present themselves and when the cash becomes available. We would be more uncomfortable holding these stocks if uranium was heading south but that is clearly not the case and our research still points to $100 for uranium.

05 October 2006