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This past weekend, one of the biggest resource conferences was held in Vancouver again this year. I was not there but I know several people who were.

Here is a quick comment that is very interesting to me: I just got home from the Gold Show.  A quick comment.  There was a panel on uranium and the general consensus was that the sector has had a really good run and it was time to get careful.

Although I agree that uranium has had a nice run the analysts are all just looking out for their own necks. Nobody wants to stick it out and take a different view.

The way they are thinking is that some profits have been made so now I can't go wrong at all by telling somebody to take profits. But they don't even go that far. They say "get careful". What does that exactly mean? Sell some? How much? So many questions...

Anyways, I am going to stick my neck out and say to stay fully invested in uranium and keep on buying more. I think when these boys all join up again with the stocks up much higher than they are now and encouraging everybody to keep buying more, then that will be the time to start selling.  

The Uranium sector as a whole has been quite hot for the past couple months and our favorite size of stocks, juniors, have been performing very nicely, with many posting triple digit returns.

However, instead of chasing the hottest stocks, I am looking for companies in the right resource sectors (such as uranium) that are lagging.

Most small cap resource stocks, due to their speculative nature, go in cycles. That is, they go up and then they come down. Therefore, to profit the most and on the most consistent basis, it is preferable to buy small cap resource stocks after they have fallen from their highs and are either flat lining or beginning a new upward trend.

Then after you have made some decent profits (you decide what you want), cash in your profits because there is a very high chance that the stock will come down after a while.

So in summary, try obey the ever lasting principle of "buy low, sell high".

Before I conclude this posting, keep in mind that patience is very important. It can sometimes take weeks or even months for your stock to bounce from its range. Stick with it for a while and you will often be rewarded. If you cut too fast and start to chase the fastest moving stocks at the moment you will undoubtedly get caught on the downfall of most of these because they drop as fast or even faster than they rise.

In the past 3 days we have witnessed what I think is a wonderful (or not so wonderful) example of the unpredictability of the future; that is, nobody can successfully predict the future on a consistant basis.

In case you have not read the news yet, here it is:

Cameco Corporation reported today that all underground areas of the Cigar Lake project are expected to be filled with water following a rock fall yesterday. Efforts to protect the main shaft and key underground infrastructure by closing bulkhead doors were not successful. Everyone was safely evacuated by 11:30 a.m. today. There were no injuries and no impact on the environment.

Cameco will now investigate options to restore access to the mine. Production startup was previously planned for early 2008 and we will assess a new production timetable after remediation plans are developed. Cameco is operator and majority owner of the Cigar Lake uranium project located in northern Saskatchewan.

The incident began at 1:10 p.m. on Sunday, October 22, 2006, in the future production area that previously had been dry. At 8:45 p.m., in accordance with existing contingency plans, the company decided to close two bulkhead doors to contain the water inflow within the future mining area. The doors were closed at 5:00 a.m. on Monday, October 23. While monitoring the area, we found that one of the doors did not seal properly which allowed significant water to flow into the processing area. Efforts to fully seal the door were not successful and the inflow exceeded capacity to pump out the water.

Contrarians almost always make money because they do exactly the opposite of what the masses are doing.

Let's see what the masses are doing:

"Gold in New York

tumbled the most in three months as plunging energy costs reduced the

appeal of the precious metal as a hedge against inflation. Gold

is down 21 percent from a 26-year high of $732 an ounce on May 12,

partly because the price of oil has dropped 24 percent from a record in

July. Crude oil fell below $60 a barrel to a seven-month low."

"'Everybody is getting out of their positions,'

said Nick Ruggiero, a trader at Eagle Futures. 'Crude came off almost

$3 this week, and gold is following.' Losses accelerated after gold

fell below $600. 'That was a big number,' Ruggiero said. 'We had a lot

TORONTO, Sept 18 (Reuters) - Denison Mines Inc. (DEN.TO: Quote, Profile, Research) and International Uranium Corp. (IUC.TO: Quote, Profile, Research) have agreed to merge in an all-stock deal that will create a mid-tier uranium producer, the companies said on Monday.

Under the terms of the agreement, Denison shareholders will exchange each share for 2.88 IUC common shares. Based on IUC's Monday closing price of C$5.91 on the Toronto Stock Exchange, that places a value of C$17.02 for every Denison share. Total value of deal is about C$522 million, based on 30.7 million outstanding Denison shares.