Thursday, January 04, 2007

Uranium Stocks Correcting II

Another huge correction for both the TSX and Venture Exchanges brought further correction in the uranium sector, with 18 of the top 20 by market capitalization uranium juniors in the red; only STRATECO RESOURCES (TSE:RSC) and LARAMIDE RESOURCES (TSE:LAM) gained modestly while heavyweights CAMECO (NYSE:CCJ TSE:CCO), PALADIN (TSE:PDN), URASIA (CVE:UUU), and SXR URANIUM ONE (TSE:SXR) all dropped between 2-5% in value. Although many have been caught in this correction, the smart ones know that uranium fundamentals have not changed, the supply-demand imbalance is still there, and heavyweights from Sprott Asset Management, CIBC World Markets (Jeffrey Rubin) and Scotiabank (Patricia Mohr) are still saying all the right things about uranium. Indeed, it is my hope that the broader market corrects even further and cools down this overheated sector as sensible buying opportunities for uranium stocks at these levels still remain far and few in-between in my opinion.


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