StockBullz.com - Uranium Stocks

Worst Over?

Thu, 24 Jan 2008 10:11:33 -0500

I think there is a good chance we have reached a bottom. The day the Venture was down around 9% was the panic selling day and since then it looks like we are on track for a 3rd day of good gains.

If you sold out your test position in Mega, consider coming back in again. It may seem weird to exit a stock then come back into it but nobody can ever predict 100% what will happen in the future. So we have to test our theories with smaller positions and then increase our position as the stock goes up.

Because if the price is going up that means we are right. And until the stock stops going up we should continue adding to our position.

If you are not familiar with this technique, try it out and see if it gives you results. I have found this technique to be the most effective in minimizing losses while still providing good gains because we try to ride out positions as long as possible.

Mega Buy

Thu, 17 Jan 2008 10:53:39 -0500

Oh no! It's the end of the world! Big News was that TSX loses 623 points in just a couple days.

It's funny that right before this everything was so positive with Gold hitting new highs and newspaper articles talking about fund manager's "herd mentality".

So what does this all mean?

Well we are at a very volatile time in our markets with large moves up and down with a general flat trend. I myself am holding put in my positions and establishing some test postions in some beaten up stocks.

What stocks?

Well the first I want to talk about is Mega Uranium (mga.to).

If you look Mega's chart there is nothing bright about it. The stock is off of its highs in the 9 dollar range to its current price below $3!!!

So yes you can say it has taken a beating!

But the thing that I find very positive about it is that Sheldon Inwentash, its CEO has been buying up the stock hand over first the last month or so in the $3 level.

This is a man who has made money time after time with stock after stock. In other words, this is a man who has a very good reputation and who's actions we should watch closely.

Time To Get This Show Back On The Road!

Wed, 02 Jan 2008 19:01:57 -0500

Happy New Year!

Boy I just looked at the time I posted last and it has been almost a full year since my last post. The past year has been a very challenging one for resource stocks but I am very optimistic about 2008.

Oil is over $100, Uranium is bouncing back to $90 but where are our dear share prices?????

In the pits!!! And more than half of Canadian fund managers are predicting drops in the TSX.

But remember folks, monkeys have a better chance of outperforming the TSX than fund managers do, so whatever they say to do, we should be doing the oposite!

So how did I do in 2007 you may ask??

Well here is a little rundown of what I was in:

KXL: Huge gains, I am very satisfied. Stock went up sharply, then down sharply. I started buying when it was flatlining. The stock is now hitting new highs and I still in but with my finger ready to pull the trigger if it drops 10-20% from current levels.

NUX: Was a large holding of mine. Am slowly downsizing but the management team is still great on this dormant stock. Good news will definetely boost this stock very fast. Right now sitting at about two bucks off highs of around 3.50 so it'll be interesting to see how long it will take to run higher.

The Contrarian Approach Right Now On Uranium Stocks

Tue, 23 Jan 2007 15:42:41 -0500

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.

Thoughts

Wed, 03 Jan 2007 19:00:54 -0500

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.

Unpredictability Of The Future

Tue, 24 Oct 2006 21:31:32 -0400

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.

Massive Uranium Merger!

Tue, 19 Sep 2006 02:06:56 -0400

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.

Sold IEA.V

Fri, 25 Aug 2006 12:53:30 -0400

This morning for a quick 20% profit. It might continue to move higher but a 2 day 20% profit is nothing to be ashamed about I think.

International Arimex Breaking Out!

Thu, 24 Aug 2006 13:57:16 -0400

This stock had a great flat chart until it broke out yesterday. I put in a limit order yesterday morning but it did not execute. Today I tried again and I did get some.

As long as volume is higher tomorrow it should continue to go up for several days.

Look at a 6 month chart of URA and you will see that it is almost identical except for prices. More detail to come very shortly...

Update

Fri, 11 Aug 2006 19:12:34 -0400

It's been a long time since I posted anything so I would like to provide a little update on my plans:

I am quite sure I don't want to write daily anymore. The effort and time consumption is not worth it for me right now.

I am becoming more and more confident in my own unique trading system which looks at professional buying patterns and trend following for an exit strategy.

So far it is proving quite profitable with Strateco and Bronco Energy.

I think both these stocks have a way's to go still.

Especially Strateco. This is looking more and more like Nova #2 so maybe take a little spec position because it could be a fun ride.

I have no targets by the way because I can't predict the future. However, the chart is telling me that there is a good chance we will pass the $1.80 previous high soon.

MONTREAL, QUEBEC--(CCNMatthews - Aug. 10, 2006) - Strateco Resources Inc. ("Strateco") (TSX VENTURE:RSC - News; FRANKFURT:RF9 - News; OTCBB:SRSIF - News) is pleased to announce that Strateco's Board of Directors has approved the distribution of 20,000,000 shares of Cadiscor Resources Inc. ("Cadiscor") to Strateco's shareholders registered at the time of the TSX Venture Exchange's market closing on August 23rd, 2006. The distribution is conditional to the closing of the Initial Public Offering ("IPO") of Cadiscor on August 17th, 2006. Strateco's shares will trade on an ex-dividend basis (without the right to receive shares of Cadiscor) at the opening of the TSX Venture Exchange market on August 21st, 2006. On that date, the shares of Cadiscor will start trading at the TSX Venture Exchange under the symbol CAO. Therefore, in order to participate in the Cadiscor share distribution, investors must buy Strateco's shares on the Exchanges at the latest before the closing of the TSX Venture Exchange market, on August 18th, 2006.

Strateco Shakeout

Thu, 20 Jul 2006 18:10:06 -0400

The Strateco manipulators took out my stop losses and probably nearly all the stops that existed.

This shakeout may have occured because they are finding it difficult to buy more shares.

This makes me a little angry but it gives me some doubts as to whether I should continue posting my opinions and ideas publicly where the pro's can read everything I am doing.

Investing is a game. For an analogy, right now it's like if I was playing Poker and saying I could win even though all the other players knew which cards I had at all times.

I am currently reading Stock Market Wizards and there is a great interview with Steve Lescarbeau. Here is a little excerpt:

Your premise is that [O'Shaughessy's] strategies stopped working because too many people were following the same ideas.
Exactly. The most important message I can give to anyone who reads your book is that if you have a great idea, don't talk about it.

Maybe my great idea is the stock manipulation idea from some of these old books I've just read. However, if everybody starts to trade on these opinions, maybe they won't work anymore.

Update From Strateco CEO

Mon, 17 Jul 2006 18:20:33 -0400

I fired off the following email to Guy Hebert, Strateco CEO over the weekend.

hello,

please tell me if you are planning a promotional drive anytime soon to
let everybody know how great your company is.

why do you think the share price has been so flat recently?

which month do you think will be the most active for news releases?

do you think it is still worth exploring mont laurier seeing how the
market is reacting to nova uranium's results?

thank you,

Mike

And I got the following response:

Hi Mike,

Regarding promotion.A site visit (Matoush) is planed for the third week of August for 7 senior mining analysts and Northern Miner journal.In September 10 days trip in Europe is scheduled including a speech on September 22 in London to UK mining analysts.

Summer market is always flat for volume.Yes is still worth to work Mont-Laurier.I worked there in 1973 and we know that we have the best piece of ground in the area.

Regards,

Guy

Buy The Real Deal, Not The One Feeding Off The Scraps

Sat, 15 Jul 2006 11:54:03 -0400

In my opinion there has been a lot of hype right now about the current play that is "hot", that is the Cordillera del Condor area in Ecuador. Aurelian recently intersected some of the best grades in a long time there.

Now of course every time a company like Aurelian makes a huge break with great results, there always seems to be a big rush to claim all the land around the first company's claims.

In the case of Aurelian, there are now several companies vying for investor's attention by saying they are right beside Aurelian and they will find grades just as good or even better than Aurelian.

Now I don't buy this and I think investors come out better time after time going with the real deal rather than the tiny companies feeding off the scraps.

The last hot play that I can recall was the Mont Laurier one of which Nova Uranium was the top dog there. They kept quoting 77 lbs historical resource and during the time period until the drill results, the price rose 1097% from bottom to top.

Hard To Get My Hands On RSC Shares

Wed, 12 Jul 2006 18:54:52 -0400

The Strateco accumulation professionals are extremely good. They are so good that I have tried two days in a row to buy some shares and I haven't been able to.

On Tuesday I entered a day limit order for $0.80. That was not filled.

Today I entered a day limit order for $0.82. That was again not filled.

The price has been unchanged for 3 days straight which I think is very good news.

Tomorrow I will probably again try to get some shares.

Oh and if you didn't notice, Strateco released some great news that is nothing new but confirmation of what was the original plan. The news has to do with the spin off of its gold assets into a new little junior. This company will have a tiny market cap so I am thinking that if they have some great discovery we will be able to get in before the big news by watching for stock accumulation. Here is the entire news release:

Bayswater Surprise!

Wed, 12 Jul 2006 18:24:47 -0400

A funny thing happened today with Bayswater, the speculative Uranium stock I was telling you about the past week or so.

Today someone by the name of Dines recommended it and the share price and volume went (literally) through the roof.

Almost 10 million shares were traded (the most actively traded stock on the Venture Exchange) and the stock closed the day up 56%. In my opinion that is madness!

Perhaps I feel a little unlucky that I just sold my shares at $0.74 at my stop loss just a few days ago but you can't dwell on little mishaps like this.

There is nobody except insiders who could have predicted a move like this.

However, just keep in mind that for every buyer of the stock today, there was a seller. Is the seller stupid? Why would he sell now when the stock is going so much higher? Well the seller is selling usually because he thinks the stock can't go any higher or he thinks that he can buy his shares back later for a cheaper price.