Thursday, September 27, 2007

Investors Chasing Uranium Mining Stocks, Again: A Favorite Emerges

Fifty years ago, uranium fever hit Wall Street. It was then just a few years after a Navajo shepherd in New Mexico, by the name of Paddy Martinez, discovered yellow rocks on his property, mistaking them at first for gold. An avalanche of 1950s dollars (more valuable than the ones we have today) poured into mutual funds and uranium mining stocks, sending their values to astronomical levels. Get ready for dj vu all over again, as Yogi Berra once said. Trend spotter, James Dines, editor of The Dines Letter, believes uranium mining stocks could become just as hot, or hotter, than the Internet stocks of the 1990s. (Editors note: interviewed James Dines on July 20, 2004, when he forecast a buying panic in uranium. Since then, spot uranium (U3 08) prices have nearly doubled. Over the past 35 years, Dines has successfully predicted mega trends in gold, internet, palladium and uranium price movements). And now investors are chasing uranium mining stocks again.

A look at industry leader, Cameco (NYSE: CCJ), which money manager Robert Mitchell called the Saudi Arabia of uranium, shows a three-year gain of more than 700 percent. Over the past few years, Australian-traded Paladin Resources, skyrocketed from under a dime to over $2/share (A$). A recent Forbes magazine cover story, entitled Going Nuclear, analyzed uraniums recent price surge, One reason the price of uranium should keep escalating is that producers are only starting to ramp up to meet the strong demand. Utilities globally need 180 million pounds of uranium annually, but at this point a mere 108 million pounds are coming out of the ground.

Why the sudden jump? A Morgan Stanley institutional report, published in December 2004, explained that through the 1990s, uranium oxide prices stayed low because surplus uranium came into the market from weapons decommissioning. That surplus inventory worked its way through the market. The Morgan Stanley analyst forecast a deep supply-side shortage of uranium, citing that new mining production hasnt yet come online to remedy the deficit. In the year-ago forecast, the uranium deficit was expected to grow to nearly 20 million pounds this year (from a surplus of 6 million pounds in 2003), and then leap to a peak deficit of more than 35 million pounds in 2006. Deficits in excess of 30 million pounds were also anticipated for 2007 and 2008. According to the Morgan Stanley analyst, $50/pound may be possible in the spot price for uranium oxide, known in the trade as yellowcake.

Mining Newsletters Favor Strathmore Minerals

Whats that mean for uranium stocks? Higher prices should be anticipated as more investors, mutual funds and hedge funds search out the best returns. While the lions share of investment dollars is likely to chase Camecos price higher, the robust percentage gains in that stock may have already peaked. Generally, new money searches for well-capitalized junior mining stocks with solid uranium projects in their portfolio. One of those most frequently recommended among mining newsletter writers is Strathmore Minerals Corp, trading on the Toronto Venture Exchange (ticker symbol STM.V). Prominent among Strathmores projects are in-situ leach mining operations proposed for Wyoming and New Mexico, plus an aggressive exploration program in the worlds richest uranium areas, Saskatchewans Athabasca Basin (home to uranium mining giant, Cameco).

In September, letter writer Lawrence Roulston of Resource Opportunities recommended Canadian-based Strathmore Minerals (TSX-V: STM), writing, The company is systematically adding value to the projects most likely to be significant in the near term, especially those with near-term production potential. Also in September, Resource World contributing editor, Alf Stewart, wrote, The two deposits Strathmore is developing were cherry picked from the inventory of Kerr McGee, largest private explorer of uranium prior to that industry grinding to a halt in the early 1980s. As these properties are largely drilled off, Strathmore may be considered more of a uranium development company than an explorer. This past June, money manager Adrian Day recommended uranium stocks in his research report, writing, So I am focusing on four main areas in uranium, with one or two buys in each top exploration companies that have the goods and are likely to bring properties into production. Strathmore Minerals, with technically strong management, lots of properties, and a strong balance sheet, is arguably the best.

New Uranium Discovery in the Athabasca Basin?

Heres one of the stronger reasons why investors might anticipate a strong rally in Strathmores share price over the coming twelve months: In a November 16th news release (, Strathmore Minerals announced a discrete conductor, more than 30 miles long, after completing an airborne geophysical survey on the companys Davy Lake property, in the north central portion of the Athabasca Basin. According to the companys news release, The conductor's profile response indicates a deep and in places, broad source.

Virtually all the significant unconformity uranium deposits known in the Athabasca Basin are directly associated with fault structures associated with graphitic conductors. Deposits such as Key Lake, Cigar Lake and McArthur River were found by drilling electromagnetic conductors located within magnetic lows.

In an interview with Jody Dahrouge, of Edmonton-based Dahrouge Geological Consulting Ltd, he told, Early indications are that this conductor is similar with other known uranium deposits, graphitic conductors with magnetic lows. On a scale of one to ten, Dahrouge rated the Davy Lake conductor a ten. It is a long conductor, cut by structures, with deep depth and associated by a late fault, explained Dahrouge. It is a high quality conductor that continues to depth, and it is typical of those occurring that are associated with known uranium deposits. Dahrouge described how the MegaTem II airborne geophysical survey was able to pinpoint the conductor as shallow as 600 meters and running deep to 1200 meters. Dahrouge made comparisons to other uranium deposits in the Athabasca Basin. The Sue Deposit near McLean Lake is associated with an electromagnetic conductor that is approximately 2.6 kilometers long, he said. Based on our work at Waterbury Lake, we identified an 8 kilometers long conductor associated with the Midwest Deposit(s). The 'P2' conductor at McArthur River is approximately 13 kilometers long. This feature was first identified in 1984, by a ground Deep EM Survey. The Shea Creek deposits, located south of Cluff Lake, are associated with an approximately 25 kilometers long conductor, known as the Saskatoon Lake Conductor. Dahrouge added, These deposits are located at depths similar to what we expect at Davy Lake.

What is probably most significant is Strathmores gamble, by exploring away from the eastern parts of the Athabasca Basin, some 300 kilometers from the eastern Athabasca Basin, where the major discoveries have been made. It was virtually unexplored, Dahrouge said with excitement in his voice. Its really virgin ground. While there is ample evidence suggesting multiple uranium deposits in the Athabasca Basin, other junior exploration companies are looking at the shallow parts of the eastern basin, which may not likely yield economic uranium ore. One pundit acidly questioned some of the current exploration activity in the Athabasca region, Are they really re-flying old ground thats already been flown a hundred times, or are they just releasing old data to save money? Dahrouge pointed out that the uranium appears to be running deeper for many of the newer discoveries, as he believes the Davy Lake property might hold true for Strathmore Minerals in the north central part of the Athabasca Basin.

Important features in many Athabascan uranium deposits are the cross-cutting fault zones. Dahrouge confirmed the Davy Lake conductor has cross-cutting fault zones with a sinistral (left-sided) fault about halfway along its length. According to Dahrouge, there is also a conductor extension which crosses the fault from west to east and flows out into a small, sub-circular magnetic low. As with many of the Athabascan uranium deposits, which tend to be found between overlying sedimentary units and underlying basement rocks, the Davy Lake conductor fits the bill. Strathmore Minerals president, David Miller, told, the 50-plus kilometer geophysical anomaly appears to indicate a basement conductor. However, Mr. Miller tempered the exhilaration in the air, A geophysical anomaly does not make an ore body. These exciting initial results will be followed up with infill geophysical lines, followed by ground geophysics, followed by shallow drilling, looking for alteration. When we have narrowed the target to drill, we will pull in the big rigs and test the conductor at the unconformity. Dahrouge remains excited about the Davy Lake conductor, and said, Clearly this represents an excellent exploration target for unconformity type uranium deposits.

What does all that mean? It could explain why Strathmore Minerals might well be on the road to a world-class uranium discovery as further exploration more clearly defines how valuable those newly discovered conductors might become. Meanwhile, Strathmores New Mexico and Wyoming properties (amounting to potentially several million pounds of uranium resource) are in the preparatory phase of the permitting process. As the spot uranium price inches forward to the widely accepted short-term target above $40/pound, several of Strathmore Minerals properties may become instantly more valuable to a utility company who will someday need the companys uranium oxide to fuel their nuclear reactor.

COPYRIGHT 2007 by StockInterview, Inc. ALL RIGHTS RESERVED.

James Finch contributes to and other publications. StockInterviews Investing in the Great Uranium Bull Market has become the most popular book ever published for uranium mining stock investors. Visit

Investment Stock Market

Investment Stock Market: Investing through online brokerage

Online stock trading can be enabled with the services of a broker. Just like the stock exchange an online broker enables an investor to buy and sell stocks. But the only difference from the stock exchange is that investors have to contact the broker through the Internet. There are various sites that provide online brokerage services. In fact online brokerage has been found to be convenient for the broker as well as the investor as stocks are traded much more efficiently.

Who is a Broker?
Brokers function as the back bone of the stock exchange shouting from one end of the stock exchange to the other for the various stocks that are to be traded on the stock exchange. It is the stock broker that has the knowledge of the market fluctuations and thus knows about the best prices for selling and buying stocks. In fact the broker functions as an agent to investors informing them about the latest market trend fixing an agreement with other investors that are listed on the Internet. It is when a deal is made between investors that an agreement is said to have brokered between the investors. This deal is brokered through the agent who is called the broker.

Advantages of Online brokerage
Similarly to the stock exchange, online brokerage renders the services of the broker, but through the Internet. However trading of stocks online enables the investor to know about the right market conditions. If the market is bullish than it is most likely that the broker will advise the investor to sell the stocks, if it is bearish it would be convenient to sell the stocks. Apart from just giving advice on the sale of stocks there are some other advantages of online brokerage which include the following:

  • Testimonial and Quotes- Investors can gain information about the brokerage services that a particular website has to offer by reading the quotes and the testimonials of the broker. It is important to note the experience of the broker and whether the broker has the adequate license of providing brokerage services.

  • Efficient handling of all financial transactions- Once investors have chosen a broker online it is necessary to provide the stock details that you would like to buy or sell. This is essential because the broker will only contact a stocks buyer or seller depending upon which industry he or she represents. Moreover it is the policy of a responsible online broker to secure the information of the investor.

  • Options trading: Through online brokerage the investor can get help into the type of stock that an investor has to sell or buy. There are many different types of stocks available with an investor, but selling of these stocks depends upon the market fluctuation. For example if an investor has IT stocks and the stock market is bullish about IT stocks then it would be important to sell these stocks among others that are not currently suitable to be sold.

Therefore online brokerage is an alternative to trading stocks on the stock exchange. But while investing through a broker it is essential to keep in terms with the agreement that one has approved with the broker, otherwise one way end up with a broker providing poor information about your investments.

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Forex Trading Tips - 2 Simple Tips To Target Bigger Gains Instantly

Enclosed we are going to give you a simple tip that many forex traders ignore in their pursuit of profits but if you learn it, you will increase your profit potential and enjoy greater currency trading success.

If you want bigger forex profits now then read on.

If you have a forex trading strategy it should have one aim and one aim only

Making bottom line profits

To do this you need to get catch and hold the big currency trends that offer you the big profits and have the odds heavily in your favour when you enter them and they dont come around often.

These trades only come around a few times a year in each currency, so the rule is:

Cut down your trading and bet big on the trades that offer you the most favourable odds.

Where Most Traders Go Wrong!

They make two major errors which are:

1.They equate frequency of trading with profits.
2.They never bet enough to win meaningful amounts or get stopped out to soon before the trade has run its course.

In forex trading you dont get your reward for how often you trade you get your reward for being right with your trading signals nothing else.

Forget day trading it doesnt work and never will - neither will trying to be in the market all the time. In conclusion be highly selective in your trading.

Also, if you do what most traders do and risk small amounts 2 10% of your equity you wont have high risk but you wont make much either.

To Win Do This

Focus on trading off support and resistance levels that are considered valid by the market - if they break chances are the trend will continue.

Understand this:

Most of the big moves in currency trading, that offer the best risk reward occur from new Market highs - NOT Market lows, so forget trying to buy dips.

Take a Risk

If you dont like taking risks dont trade currencies most traders try so hard to avoid risk they create it and guarantee that they will lose.

Dont place stops to close and trail them SLOWLY make sure you keep them back behind the market noise and are not stopped out by normal market pullbacks.

If you cant take dips in open equity, you will never enjoy currency trading success so get used to them.

Be prepared to risk up to 25% on high odds trades if trading a small account and have the courage of your conviction - if you believe in your forex trading system bet as much as you can afford to.

Trade the Odds Bet meaningful amounts and

Win big thats the whole aim of the above tips.

You can use the above tips and make triple digit gains - by trading just a FEW times a year!

You may say, thats not the advice I normally see or its not the norm but personally I wouldnt worry too much about as:

95% of traders lose and follow conventional advice the above may not be conventional but if youre a trader who simply wants to make money, you will understand why it can lead you to currency trading success.

Good luck and good trading

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