Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
SPX/Gold, Long-term Yields & Yield Curve 3 Amigos Update - 22nd Jun 18
Gold - How Long Can This Last? - 22nd Jun 18
Dow Has Fallen 8 days in a Row. Medium-long Term Bullish for Stocks - 22nd Jun 18
Trouble Spotting Market Trends? This Can Help - 22nd Jun 18
Financial Markets Analysis and Trend Forecasts 2018 - A Message from Nadeem Walayat - 21st Jun 18
SPX Bouncing Above Support - 21st Jun 18
Things You Need To Know If You Want To Invest In Bitcoin Now - 21st Jun 18
The NASDAQ’s Outperformance vs. the Dow is Very Bullish - 21st Jun 18
Warning All Investors: Global Stock Market Are Shifting Away From US Price Correlation - 20th Jun 18
Gold GLD ETF Update… Breakdown ? - 20th Jun 18
Short-term Turnaround in Bitcoin Might Not Be What You Think - 19th Jun 18
Stock Market’s Short Term Downside Will be Limited - 19th Jun 18
Natural Gas Setup for 32% Move in UGAZ Fund - 19th Jun 18
Magnus Collective To Empower Automation And Artificial Intelligence - 19th Jun 18
Trump A Bull in a China Shop - 19th Jun 18
Minor Car Accident! What Happens After You Report Your Accident to Your Insurer - 19th Jun 18
US Majors Flush Out A Major Pivot Low and What’s Next - 18th Jun 18
Cocoa Commodities Trading Analysis - 18th Jun 18
Stock Market Consolidating in an Uptrend - 18th Jun 18
Russell Has Gone Up 7 Weeks in a Row. EXTREMELY Bullish for Stocks - 18th Jun 18
What Happens Next to Stocks when Tech Massively Outperforms Utilities and Consumer Staples - 18th Jun 18
The Trillion Dollar Market You’ve Never Heard Of - 18th Jun 18
The Corruption of Capitalism - 17th Jun 18
North Korea, Trade Wars, Precious Metals and Bitcoin - 17th Jun 18
Climate Change and Fish Stocks – Burning Oxygen! - 17th Jun 18
A $1,180 Ticket to NEW Trading Opportunities, FREE! - 16th Jun 18
Gold Bullish on Fed Interest Rate Hike - 16th Jun 18
Respite for Bitcoin Traders Might Be Deceptive - 16th Jun 18
The Euro Crashed Yesterday. Bearish for Euro and Bullish for USD - 15th Jun 18
Inflation Trade, in Progress Since Gold Kicked it Off - 15th Jun 18
Can Saudi Arabia Prevent The Next Oil Shock? - 15th Jun 18
The Biggest Online Gambling Companies - 15th Jun 18
Powell's Excess Reserve Change and Gold - 15th Jun 18
Is This a Big Sign of a Big Stock Market Turn? - 15th Jun 18
Will Italy Sink the EU and Boost Gold? - 15th Jun 18
Bumper Crash! Land Rover Discovery Sport vs Audi - 15th Jun 18
Stock Market Topping Pattern or Just Pause Before Going Higher? - 14th Jun 18
Is the ECB Ending QE a Good Thing? Markets Think So - 14th Jun 18
Yield Curve Continues to Flatten. A Bullish Sign for the Stock Market - 14th Jun 18
How Online Gambling has Impacted the Economy - 14th Jun 18
Crude Oil Price Targeting $58 ppb Before Finding Support - 14th Jun 18
Stock Market Near Another Top? - 14th Jun 18
Thorpe Park REAL Walking Dead Living Nightmare Zombie Car Park Ride Experience! - 14th Jun 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

Less than 25 New Companies to Mine Uranium by 2011

Companies / Uranium Apr 23, 2007 - 06:27 PM GMT

By: James_Finch

Companies Nearly 500 companies are posing as 'uranium mining companies' worldwide. Hundreds of those publicly traded uranium companies will never mine a single pound of uranium. Along with the crash-and-burn of those companies, many investors could lose all or a large part of their speculative investment. How can one really find out which companies have an honest shot at becoming uranium miners?


Odds favor the eventual disintegration of hundreds of uranium mining juniors over the next few years. More than 500 companies now claim to be exploring for uranium, developing one or more uranium projects or producing uranium. As 2010 approaches, 90 percent of those companies will have changed their name and/or moved onto something new. Investors are vulnerable to the subsequent stock rollbacks in those highly speculative issues, which could result in the entire loss of their investment.

After three years of research, we've watched the entire sector jump by twenty-fold from a few dozen uranium companies to the present number. As many as four hundred companies were never really serious about becoming uranium producers. They were simply trying to ‘raise money' and capitalize upon the hottest commodity sector. Our intensive six-month research investigation found less than 25 of the new uranium companies likely to mine any uranium before 2011.

Many of those near-term producers are being rewarded by high market capitalizations, but many of the junior exploration companies remain at very high risk. In Chapter Three of our new publication, Uranium Outlook 2007-2008, we explained the difference between choosing a uranium stock today and tomorrow versus a year ago. In 2005 and 2006, choosing nearly any uranium stock was a dart throw away from hitting the bull's eye. Now that the market has begun maturing, investors must become more selective in their decisions.

The next two years will likely to witness a massive consolidation within the uranium space. Only those companies which have moved their projects forward are poised to survive the eventual ‘downdraft' in the uranium price. Earlier this year, we forecast high volatility in the uranium price. The spot uranium price has soared, but the amount of actual uranium material trading hands continues being delivered at much lower prices. We also forecast a price hiccup, probably as early as this summer. Investors must question whether some of the marginal exploration companies remain safe, even for momentum trading.

Other questions investors must ask themselves include:

Which major mines are vulnerable to lowered mining output between 2007 and 2011? We found at least three uranium producers which may have difficulties with their current mining operations and explained why in Chapter One of Uranium Outlook: 2007-2008.

How can an investor minimize his risks when studying which uranium companies offer the most safety in the years ahead? Is it possible to separate the hyperbole from the reality of a company's project(s)? We wrote the old rules, and now there's a new set of rules to follow.

When will uranium prices peak and reach equilibrium between supply and demand?
What are the most major obstacles preventing the near-term uranium producers from transforming their uranium projects into operating mines?

Is it worth betting on the Australian mining companies? There is a triple-whammy ahead for more than 100 Australian uranium exploration companies. Nearly everyone is focusing on the Labor Policy change.

This doesn't mean investing in uranium mining stocks hasn't reached fever pitch yet. The mania is on, but not over yet. When will it end? We have three price peaks – from high to low and in between – citing where and when the uranium price would likely peak and where it would fall to. Every bull market climbs a wall of worry and uranium is no different.


By James Finch
http://www.stockinterview.com

COPYRIGHT © 2007 by StockInterview, Inc. ALL RIGHTS RESERVED
James Finch contributes to StockInterview.com and other publications. His focus on the uranium mining and nuclear fuel sector resulted in the widely popular “Investing in the Great Uranium Bull Market,” which is now available on and on http://www.amazon.com The weekly spot uranium price is posted on the TradeTech website every weekend at http://www.uranium.info


© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules