Cameco's Disaster Fuels Uranium Boom (Part 2)
Yesterday's gains by uranium juniors not named Cameco continued today as all but two of the twenty uranium companies posted green figures. SXR and Ur-Energy continued their double-digit ascent while Paladin traded a staggering 30 million shares.
These are all good and well, but since I touched on the same thread yesterday, I will attempt to place my observations in another context.
Word amongst uranium investors first circulated several days ago about a uranium story that broke on Marketwatch. Myra Saefong wrote what basically amounts to a uranium primer, mainly for those investors curious, but with little or no prior knowledge of the sector. The only companies mentioned were, of course, Cameco, and Uranium Participation Corporation.
Similarly, on RoBTV today, Cameco's water problems put the immediate spotlight on uranium. Lunch Money did a brief segment detailing Paladin as a more speculative, but possible alternative to Cameco. A chart of five uranium stocks was shown, comprising of UEX, Paladin, Denison, IUC, and SXR Uranium One.
Finally, the Canadian Press released an article entitled 'Uranium Stocks Surge' and detailed the rise of Paladin, SXR Uranium One, Forsys, Urasia, Denison and IUC.
The point that I'm trying to get at is this: money is pouring into uranium, but disproportionately so towards the "large caps" of uranium, the mid-tier junior producers/near-producers. Whether it is from institutional investors bailing out of Cameco or Norther American investors who have just started to notice uranium, the publicity and the attention are on a select group of stocks, the ones that I have observed being spewed over and over again.
And when one thinks about it, why not? Seriously, what are the alternatives to Cameco? If you wanted to invest in uranium, but wanted a stock at least, if not roughly equal in market cap (nobody is remotely close), or even just a TSX-listed stock, the choices are few and far between. One of my picks Forsys Minerals was mentioned in the same breath as Paladin and SXR. Why? Well, how many other uranium companies are TSX-listed?
I will not talk about uranium price forecasts at this point, but from what I'm observing, uranium investing education is still only in its infancy and savvy investors will do well to keep this consideration in mind.
These are all good and well, but since I touched on the same thread yesterday, I will attempt to place my observations in another context.
Word amongst uranium investors first circulated several days ago about a uranium story that broke on Marketwatch. Myra Saefong wrote what basically amounts to a uranium primer, mainly for those investors curious, but with little or no prior knowledge of the sector. The only companies mentioned were, of course, Cameco, and Uranium Participation Corporation.
Similarly, on RoBTV today, Cameco's water problems put the immediate spotlight on uranium. Lunch Money did a brief segment detailing Paladin as a more speculative, but possible alternative to Cameco. A chart of five uranium stocks was shown, comprising of UEX, Paladin, Denison, IUC, and SXR Uranium One.
Finally, the Canadian Press released an article entitled 'Uranium Stocks Surge' and detailed the rise of Paladin, SXR Uranium One, Forsys, Urasia, Denison and IUC.
The point that I'm trying to get at is this: money is pouring into uranium, but disproportionately so towards the "large caps" of uranium, the mid-tier junior producers/near-producers. Whether it is from institutional investors bailing out of Cameco or Norther American investors who have just started to notice uranium, the publicity and the attention are on a select group of stocks, the ones that I have observed being spewed over and over again.
And when one thinks about it, why not? Seriously, what are the alternatives to Cameco? If you wanted to invest in uranium, but wanted a stock at least, if not roughly equal in market cap (nobody is remotely close), or even just a TSX-listed stock, the choices are few and far between. One of my picks Forsys Minerals was mentioned in the same breath as Paladin and SXR. Why? Well, how many other uranium companies are TSX-listed?
I will not talk about uranium price forecasts at this point, but from what I'm observing, uranium investing education is still only in its infancy and savvy investors will do well to keep this consideration in mind.
posted by Spelunca at 12:11 AM
2 Comments:
BHP is certainly the bluechip mining stock in ANY portfolio..i'm sure you can hold that stock for as long as the mining supercycle and be happy about it. having said that, I'm not personally interested in BHP because of my focus in uranium pureplays..the caveat, of course, being that i don't have all my money in uranium in the first place =P
to be honest, I do not focus on Australian uranium stocks because I live in Canada..the most I can handle right now is to keep an eye on things internationally and follow trends..at some point I want to investigate further, but right now, I can't really give any good advice on Australian U stocks..as for U.TO, it usually traded at about a 15-20% premium but I imagine that has really gone up in the last few days..
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