Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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


© 2005-2022 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