Uranium oxide went from over $130 per pound down to $90, the first price decline in four years, and a pretty wicked one at that. The general scare in the stock market, combined with the hugely overbought monthly and weekly charts of the uranium stocks, and the price fall for U3O8, made for some real wipeouts. LAM and PNP - 16 to 4, whew....

I never dreamed such a decline would occur. Now, the "Purge" has occurred for real, IMO, and we're still in a long-term bull, again in my opinion, of course. U3O8, after all, was $7 earlier this decade, and energy issues overall are acting well.

I'm all back in, and last week, especially Friday, was nice. PDN worries me - could easily just be a correction back up in a still-ongoing decline; remains to be seen. I continue to love ALS not only for uranium but also for the other stuff that comes out of the ground.

Doug

Doug: will probably be joining you a little later this month around 9/26. I'm expecting a little more weakness into that time period. Best MDW

I picked up a little of USU on Friday around 12.20, could have waited for 11.90...





Echo

doug,

Nice day in uraniums. What are your favorites these days, say the top three?

cheers,

john

New ETF is NLR. I'm long.

John, I haven't been paying attention other than to notice what has been a boring and disappointing market. Rather than "V" bottoms, lots of uranium issues have made double bottoms or similar now.

ALS.TO because of its hybrid nature and exposure to precious metals and other stuff too. Been a great one - closed at 30 today.

I guess I'd also pick FRG and MGA.TO, just based on the charts and my perception of their management, which may be getting out of date.

Still in for the long haul here, though it's sure not like the 2002 - early 2007 period.


Best,

Doug

hi doug,

Thanks. I'll look at MGA.TO.

I picked up UUU.TO, EFR.TO and U.TO last week. Steve Saville mentioned these names so I accumulated a position there and will look to add. The sector has bottomed, no question IMO. Now do we still have a bull market here? I suspect so, time will tell.

cheers,

john


P.S. Remember my post on Aug. 16th?

John, I do remember that, and a very good call it was. Had a $3 per lb. price increase this week for U3O8, the first in quite a while. Stockpiles can be sold, weapons decommissioned, etc., but looks to me like the demographics and energy demand still argue for the bull.


Best,

Doug

Oh yeah - UEX too!



Good news today on it, and up big on serious volume. There's certainly a ton of scam stocks out there, but for the "real" uranium issues, I think surprises will tend to be on the upside.



Took a four-month whipping, bottomed, rallied, then had another scary decline last week. Didn't manage to get down as low as in August, and momentum was diverging higher. Good grief - shouldn't the weak hands all have been forced out of this bad boy or what?

Anyway, no guarantees of course, but looks like another major green light.

Doug

I don't know what's going on, but everything is green today. Nice moves, 5% to 25% up. MGA.TO up 13% and it had concerned me and been a relative laggard. May not be much in the grand scheme of things but feels like more confirmation that a significant bottom was made this year and is behind us.

Doug

hi doug,

I did not get around to adding MGA.TO to positions. But I did add more UUU.TO and EFR.TO last week. I also added KRI.TO and USU on Friday as new positions. I hope I am right about my USU entry because it has been one hell of a fall for that stock.

I plan to hold these positions well into 2008. You?

cheers,

john

John, I plan to hold 'em a long time. I have all those you mentioned, just not so heavily weighted to UUU this time around. Waiting for USU to break up. (Do you hear that, USU? Let's go!) And EFR.TO having trouble with the 2 level. Sheesh.

I'm proceeding as if the uranium price has now turned around and is again in bull mode. We shall see. Also that the long-term picture is a very promising one. No guarantees, and trading on perceived fundamentals is really dumb, usually. However, the moves down after this spring's price highs in most uranium stocks burned a lot of people and got rid of "speculative excess" to a large extent, IMO.



Was $7 in 2000 and below $10 in 2002. It had not only a hard fall but the first move down in four years. Is this still really a bull market? I think so.

Best,

Doug

Mentioned this one in March when it was around 10. Also produces base and precious metals. Might get a little decline here; might buy some more.

Uranium price update.







It languished for many years, bottomed in 2000, $7, rose until earlier this year, over $130 per lb., then fell hard below $80. Now has rebounded to $93.

Doug

any thoughts on Uraniums coming into buy range again?

Seems to have found good support, bottom may be in.