Monday, July 26, 2010

Uranium Sector Starting to Heat Up!!!

After being in one of the longest bear markets for almost 3 years now.... Uranium looks like to finally be turning around. The Uranium market went parabolic in 2006 and 2007 and since then has not been able to turn around after many stocks with just the name uranium in it were sent to dizzying heights as the price of U3O8 soared well past $100.

2 stocks that I put back on the watchlist a few weeks ago and immediately I saw gains were Mega Uranium and Hathor. Mega Uranium MGA.TO is dirt cheap and used to be a company that had a billion dollar market cap and is now trading around .50. This price is a steal for the amount of deposits they have and potential projects they have on the go although they are a little short on production.

Another stock that is turning the corner is Hathor HAT.V, and they keep announcing some of the highest grade and value intercepts in the entire Athabasca Basin, EVER!!! I have heard numerous calls that U3O8 has bottomed and is now moving up to prices of around $60 - $75 dollars and if spot prices move to these levels then it will start generating interest again in the sector as well as some of the riskier, higher cost projects.

Companies that will benefit from this move are the low grade projects in the midwest US such as Denision DML.TO.

Personally I like HATHOR because I am Canadian and there is no better place than the Athabasca Basin. Got in an argument last year with a guy who was still pumping UEX... Maybe UEX gets a mine but HAT is where its at, anyday of the week.

Also like Mega because it has the the biggest potential of the bunch from where it was when U3O8 prices were at their peak.

3 comments:

  1. Rich deposits by grade are wonderful, but do not always yield a viable mine. If the ore is 10% u308, but only 5 inches thick and 500 feet down; it just aint going to fly.

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  2. what about Cameco CCO,, totally Canadian EH! with fingers in several plays and countries ,, and a real steal at $ 25 a share,,,

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  3. what about UUU - $1.06 one time dividend and soon to be the 5th largest producer in the world with much better mining cost than even Comeco... UUU or CCO are great buys!

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