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Started By
Message
Anyone want to take the uranium plunge with me?
Posted on 4/14/11 at 6:10 pm
Posted on 4/14/11 at 6:10 pm
quote:
Uranium companies from Toro Energy Ltd. to Mega Uranium Ltd. are so depreciated they’re trading at less than their assets would be worth in a fire sale.
That’s one reason takeover speculation is increasing after Japan’s nuclear crisis made uranium miners 31 percent cheaper relative to book value, according to data compiled by Bloomberg. Toro, which explores for uranium in Australia, tumbled below the value of its net assets, and Mega Uranium trades at a 59 percent discount. The price-to-book ratio for Australia’s Paladin Energy Ltd., the most likely takeover candidate among producers according to BMO Capital Markets, slid 21 percent.
While last month’s disaster at the Fukushima Dai-Ichi plant triggered fears of radiation, firms from Commerzbank AG to Deutsche Bank AG are still projecting higher uranium prices as developing nations from India to China seek to meet power demand in the world’s fastest-growing economies. Nuclear Power Corp. of India said yesterday it’s considering a venture with state-owned Uranium Corp. of India to acquire mines overseas, and Newmont Mining Corp. disclosed a 6.7 percent stake in Paladin.
“With the financial market’s view on the uranium industry and nuclear being extremely negative, there’s some opportunity because this is just a knee-jerk reaction,” said Ben-Ari Elias, a New York-based analyst at Sterne Agee & Leach Inc. “The whole space is cheap and it shouldn’t be. I do think some properties will come up for sale.”
LINK
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Posted on 4/14/11 at 6:20 pm to Tiger JJ
Which one you like?
Posted on 4/14/11 at 6:21 pm to John Merlyn
You choose.
Posted on 4/14/11 at 6:36 pm to Tiger JJ
I selected Toro when I picked from a hat.
So I'm going with Mega.
So I'm going with Mega.
Posted on 4/14/11 at 7:36 pm to Cdawg
How do you even purchase these? My broker doesn't recognize the symbol because of the exchange that they are listed on.
Posted on 4/14/11 at 7:43 pm to Tiger JJ
Good article, thanks. I've been meaning to research this as it makes a lot of sense. I don't see how the world can avoid building more nuclear plants. The stocks are not beat up as much as I had hoped but still seem like a good play.
Posted on 4/14/11 at 8:00 pm to LSUtoOmaha
My USAA account has:
Mega Uranium-MGAFF
Toro Energy-TOEYF
Mega Uranium-MGAFF
Toro Energy-TOEYF
Posted on 4/14/11 at 8:47 pm to Tiger JJ
I already picked up some DNN and CCJ. If they go down, I'll get mnore.
If the economy recovers, we'll need more electric power plants. If it does not recover, everything will go down unless the Fed keeps printing.
In that case, things will go up because the dollar will be worth less.
If the economy recovers, we'll need more electric power plants. If it does not recover, everything will go down unless the Fed keeps printing.
In that case, things will go up because the dollar will be worth less.
Posted on 4/14/11 at 9:48 pm to Tiger JJ
Paladin Energy is the safest bet but still has a lot of upside. I might buy into them under $4.00. Thanks JT
Posted on 4/14/11 at 9:59 pm to ZZTIGERS
ZZTIGERS, what type of fund are your uranium companies located in?
Posted on 4/14/11 at 10:45 pm to goodgrin
Not sure. When I searched for Mega Uranium, I do remember it's OTC. I believe Toro was also OTC. I'm going to look into it more tomorrow. I just did a quick glance out of curiosity.
Posted on 4/14/11 at 11:07 pm to Tiger JJ
I have been talking about buying cameco for a while. I will do it if you do too.
Posted on 4/14/11 at 11:07 pm to Tiger JJ
I like this trade but the situation in Japan has pushed back the time-line a bit.
I'll offer more insightful commentary when I sober up in the morning.
Full Disclosure: I own a lot of smaller u3o8 miners and doubled down when they sold off hard 3 weeks ago.
I'll offer more insightful commentary when I sober up in the morning.
Full Disclosure: I own a lot of smaller u3o8 miners and doubled down when they sold off hard 3 weeks ago.
Posted on 4/15/11 at 1:21 am to Athanatos
Disclosure: ATHANATOS IS GHEY
Posted on 4/15/11 at 2:35 am to ZZTIGERS
Yeah I found them. Hmm decisions decisions
Posted on 4/15/11 at 7:41 am to LSUtoOmaha
I'm going with Cameco.
Posted on 4/15/11 at 4:26 pm to LSUtoOmaha
Well I followed through and purchased this morning at 28.05. Nice 1.5% in unrealized gains for the day. Not a bad start to the portfolio. 
To HiddenFlask for the pseudo recommendation
I'm becoming an even bigger fan of oversold uranium companies the more I read.
To HiddenFlask for the pseudo recommendation
I'm becoming an even bigger fan of oversold uranium companies the more I read.
This post was edited on 4/15/11 at 4:27 pm
Posted on 4/15/11 at 4:43 pm to LSUtoOmaha
quote:
LSUtoOmaha
I think that cameco is the best one out there, but I'm far from an expert. I just read the writings of experts pretty regularly.
Posted on 4/15/11 at 6:14 pm to Tiger JJ
quote:
Anyone want to take the uranium plunge with me?
I guess my hesitation to do so stems from the fact that if a novice investor such as myself had that exact thought (and I did as soon as the nuclear reactor problems became public)...then it can't be all that great or original an idea and, if it was, it would've already been taken advantage of by people far more savvy than I.
Posted on 4/16/11 at 11:42 am to LSUtoOmaha
Most of these Canadian miners are listed on the TSE or Venture exchanges but cross-listed on the OTC (to avoid paying burdensome filing fees on two major exchanges) and are usually denoted by the fifth-letter identifier "F", for foreign.
If you like Paladin, what about Newmont as a less risky bet but while still gaining some exposure to Paladin?
This post is to anyone, I was just responding to you LTO.
If you like Paladin, what about Newmont as a less risky bet but while still gaining some exposure to Paladin?
This post is to anyone, I was just responding to you LTO.
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