How to Rate Your Favorite Uranium Company
Many investors invested in the Great Uranium Bull Market with little rationale behind their speculation. Through the robust rallies of the past two years, it was easy to play the momentum of a newsletter writer’s recommendation. Quite a few did so, often employing the ‘greater fool strategy’ and hoping the last and dumbest investor would provide an exit strategy for the early and nimble speculator. We have created a 7-point ratings system to help you in determining which companies might be best suited for your degree of investment risk. It’s a guideline you can use, and we’ve not assigned a weighting to each item. Nor have we named any uranium companies. This is a do-it-yourself ratings system, which requires but two actions on your part: (a) be persistent in your data-gathering from each company by asking the questions we posed below, and (b) be honest in your assessment when you review this data. Some of the more speculative, pure exploration plays might abandon their properties by the end of the year or in 2007. Those would include under-capitalized companies with the more speculative properties and who also fare poorly on our ratings system. This ratings checklist would also apply to the pure specs. We began with our article, “How to Choose a Uranium Stock,” featuring Sprott Asset Management Market Strategist Kevin Bambrough and Senior Portfolio Manager Jean Francois Tardif, as a starting point to create a more advanced ratings system for you. Uranium producers are likely to make a strong comeback as they cross over or switch to more lucrative long-term contracts. But, it could be the smaller, but more solid, uranium development companies which could emerge as the preferred investment vehicles, when the bull resumes the next leg of its long run. Now that we have had a shakeout, with possibly another one on the horizon, it is wise to properly evaluate the important merits of the more serious uranium development companies. Below are some of the key criteria we are using in our ratings system to objectively evaluate uranium companies covered in our new book, “Investing in the Great Uranium Bull Market: A Practical Investor’s Guide to Uranium Stocks.” Please determine if your favorite exploration and/or development company meets these standards. This is one way of obtaining sufficient data to help you form a snapshot of a company’s prospects. 1. Cash Position. The more cash a company has in its treasury, the longer it can survive. Find out if your favorite company has a minimum of $20 million in cash. More than $30 million gives a company some breathing room. Exploration and development are very expensive propositions. Raising money in a down market is very tough. 2. National Instrument 43-101. This independent geological assessment determines how many pounds of uranium a company’s property hosts. While there are flaws with this system, it can be a workable yardstick. Find out if your favorite company has a minimum of 20 million pounds of a NI 43-101-compliant uranium resource. One should consider historical resources inadequate for evaluation purposes. They may also be misleading and open to hyperbole. 3. Pedigree of Known Deposits. Many of the uranium development companies hold properties, which were once held by the minerals or uranium divisions of major oil companies. Some were continuously held, during the 20-year bear market in uranium by one company or another, and then abandoned during the nadir of the drought. Find out if your favorite uranium company’s primary properties were continuously held until 2000 or a bit longer, but before the spot uranium market reversed. The earlier a company acquired its properties, the greater the probability that company got the best ones. Those who came into the game late often got the crumbs. 4. Drill Databases. Those previous land tenants, the major oil companies, who spent tens of millions of dollars drilling the uranium properties, accumulated drill databases. Some companies got the property, but not the drill databases. Some companies bought the drill database as part of their property acquisition. Find out if the company’s primary properties also have the drill database accompanying it. You may be surprised at what you find. 5. Pedigree of Uranium District. There are several premier uranium districts, which have a history of large-scale uranium production: Athabasca, Australia’s Northern Territories or South Australia, Grant’s New Mexico, Wyoming, Kazakhstan, Niger, and Namibia. Find out if your favorite company has holdings in these districts. Some companies have holdings in multiple uranium districts, which may also become recognized as a wise decision by their management. 6. Management’s Technical Experience. There are three categories of uranium experience: exploration geologist, project geologist and mine operations. Find out how much experience your company’s geological team has in each of those three categories. Those with less than 100 man-years of uranium experience behind them may be lacking. Those companies which have strength in all three categories could become the next uranium producers. 7. Political or Environmental Risk of Primary Assets. Finally, you should assess the risk of the company’s primary assets with regards to its location. Primary uranium assets in North America or Australia’s Northern Territories hold the lowest risk. Those companies exploring or developing in Niger, Namibia or Brazil have slightly higher political risk. Companies with prospects in countries such as the Democratic Republic of Congo, Kazakhstan or Mongolia hold more risk than some investors may wish to tolerate. Areas which forbid mining such as Queensland, Western Australia or the U.S. state of Virginia carry an enormous degree of risk and a Kierkegaardian leap of faith. Now you can rate your favorite uranium company and use this ratings system to help you sift through the more than 300 potential stocks in which you might have considered investing. James Finch contributes to StockInterview.com and other publications. Sign up now and get your free copy of our new book, “Investing in the Great Uranium Bull Market: A Practical Investor’s Guide to Uranium Stocks.” Just visit http://www.stockinterview.com for details. |
Other Trading System Articles
The Stock Trading Plan - Why You Must Have One To Trade Successfully This is the continuing story of our two imaginary traders, Peter and Paul.Peter is a professional trader, Paul is not. Peter has a tested, proven, written trading plan that he follows each time he enters a trade, Paul does not.Peter and Paul have had vastly different Stock trading experiences - Peter has just made another substanti ...BBC Tasks The BBC was formed in nineteen twenty six as a public company. It was recognized by an act of legislative body, Royal Charter, and a declaration about what the administration is and what the main purposes of it are. BBC has numerous objectives which it has to fulfil. Over the years he BBC has in addition become more commercialized as they are ...Making Money with Electronic Currency Exchange Although Electronic Currency Trading is not easy for the beginner to grasp at first, this is going to be a full on explanation of what is possible to achieve when you get started with the Electronic Currency Exchange Business.Is it true that you can make money with Electronic Currency Exchanging? How can we be clear on this to understand ...America - From Freedom to Fascism - A Movie by Aaron Russo OK, I'm being a little melodramatic. Maybe it was the reaction of the audience or maybe it was the standing ovation in the over-filled-to-capacity auditorium; but I got a little choked up by the 90 minute screening of a new documentary called "America - From Freedom to Fascism". The movie was shown for free at Adirondack Community College in Que ...NASDAQ 800? In November of 2000 when the NASDAQ was trading at 3000 I wrote in this column that the NASDAQ Index would fall to 1500 and I got lots of heat for saying it. Microsoft had fallen from $129 to $60 per share. You know where they are today.The talking heads on CNBC-TV and many of the radio stock experts are convinced we are headed back up as ...Forex Trading Courses - What Can I Expect? In a market where trade in foreign money is up to two trillion dollars a day, a good Forex trading course can be very beneficial. Part of the reason a trading course is a good idea is because only five percent of traders actually make a profit on a consistent basis. This is has to do a lot with those who decide to get involved in the Forex marke ...New to Investing? Simple Guidelines for Success A financial advisor and friend once told me, “It doesn’t matter how good of job someone has, if they want to acquire wealth in this life, at some point they are going to have to invest in something.” Investing is something most people will do during their lifetime. They may invest in real estate, life insurance, stocks, bonds, mutual funds or a ...Futures Trading Systems Futures trading is a financial arrangement, also called a forward contract. A futures contract is an undertaking by a seller to provide a commodity or any other pre-decided asset on a pre-determined date to the buyer. The commodities that are usually traded in this manner are edibles such as wheat and sugar. Stock market indexes, government bond ...Without Your Racing Helmet, You Could Literally Scrape Through on the Road When it comes to taking a spill on your motorcycle, the odds are everyone will do so sooner or later. The importance of motorcycle safety cannot be stressed enough. Taking a few precautions such as wearing a suomy motorcycle helmet or some type of atv helmet and having some knowledge of how to handle your bike or ATV in the event of a dump wil ...E-Currency Reviewed 2006 Many of you reading this are looking for away to make money using the e-currency exchange system. Very few of you probably know just what the e currency system is and what it does.I am sure you also have found bad reviews on it. I myself wrote bad reviews on it but not because I didn’t like it just because it was running a bit slow ...Ed Seykota Markets: FuturesContact: Undisclosed. (I do have his e-mail address but it would be unfair to disclose it.)Results:Undisclosed but thought to be up there with the VERY best. He has made some of his managed account holders into multi-millionaires from small initial investments.Featured in the books "The Market Wizards ...E-currency Trading - An Alternative to Futures & Forex Trading I find it amazing that nearly everyday I receive something online or offline that is the greatest break-through in Trading. You know the stuff. This ‘system´ or that ‘method´ has been thoroughly tested and back-tested in every conceivable fashion and is wildly successful. Some work for a period of time but most do not. The decades old statistica ...Marketing Your Merchandise on eBay According to a 2005 survey, close to sixty percent of Americans reported that they dreamed of starting their own business, both to increase their income and their independence. It appears that, more than ever, Americans are turning to eBay to fulfill that dream. According to the same study, almost three quarters of a million Americans are consid ...What Is ISL Uranium Mining? In situ leach mining (ISL), also known as in-situ mining or solution mining, was first used as a means to extract low grades of uranium from ore in underground mines. First used in Wyoming in the 1950s, originally as a low production experiment at the Lucky June mine, it became a high-production, low cost method of fulfilling Atomic Energy Commi ...Common Medications for Dental Pain (Part 2) In part 1, nonnarcotic pain medications for dental pain are discussed. Dentists use these medications for relieving mild to moderate oral pain. This article describes the narcotic medications. For moderate to severe dental pain, the typical medications are:• Tramadol (Ultram), 50mg every 6 hours as needed for pain.• Tramadol with a ...Former Enron Chief - Kenneth Lay, et al - Society's Lesson Lay 'Shocked' by Enron Verdict—Former Enron Chiefs Convicted in One of the Biggest Business Scandals in U.S. History--headline for one of the first articles written about the verdict of former Enron Chiefs Kenneth Lay and Jeffrey Skilling By Kristen Hays, the associated press, jumps off the page with stark clarity.One wonders how either ...Why Do Most Traders Fail To Make Money Currency Trading? Based on reliable statistics, it is thought that approximately 90% of retail traders fail to make money currency trading. This is a scary thought for someone wanting to start out as a forex trader. Yet new people are attracted to forex trading every day and it’s obvious as to the reasons why.Forex trading offers leverage benefits whereby ...The Gaian Paradigm Part 2 Part 2 The Implication of the Gaian Paradigm to Social InstitutionsThe new Paradigm is a scientific hypothesis which explains many phenomena in cosmic evolution. But it is more than that. It suggest a new worldview or mindset by which humans can examine current phenomena with respect to their long range future. Futurists are no long ...Beginner Traders Information on Futures Index Trading Futures IndexesIn 1982 the Chicago Mercantile Exchange brought out the S&P 500 and the life of an index trader was possible. You could buy or sell the equivalent of the 500 largest capitalization stocks in the country, stocks on the New York Stock Exchange, on the American Stock Exchange, on the Nasdaq stock exchange all in one ind ...Making Relocation to Another City an Adventure Moving to a new home is an exciting experience. When the move means you will be relocating to a new area, the experience becomes an adventure. There won't just be a new house to settle into, but new roads to navigate, new schools to research, new people to meet, new towns to explore -- a whole new world for you and your family. Then there’s t ...Home Teeth Whitening Systems Are A Fast Way To Brighten Your Smile Many of us wish that we had a whiter brighter smile. Many things dull and stain our teeth. Age has an affect on how white are teeth are along with things like coffee and Tea. With the popularity of the many different flavored coffees on the market there are many people needing to whiten their teeth. There are many teeth whitening products av ...Global Banking Industry Tendency Global banking involves similar operations as local banks do. However, global banking usually deals with money and foreign exchange; whereas local banks concentrate on lending, asset management and consulting services.There are numerous ways in which you could segment the banking industry. One of the ways could be the sector in which the ...'Fixed Ratio' Money Management Money management is the most important and overlooked subject in trading!In my opinion, the best money management system for Forex/Futures traders is outlined in great detail in Ryan Jones' book The Trading Game: Playing by the Numbers to Make Millions. In this book, he teaches 'Fixed Ratio' money management. This method, he argues, will ...Discount Online Futures Trading Futures are contracts that obligate sellers to provide buyers a commodity or other asset at an agreed-upon price and date in the future. Futures are widely traded for commodities such as coffee, sugar, oil, and wheat. Futures are also traded for financial instruments such as stock market indexes, government bonds. and foreign currencies. Futures ...Futures Trading Software - Choosing a Package For Big Profit Potential! The growth of the Internet has seen traders look more at the use of futures trading software as a way to increase their profit potential.Today, many vendors are selling futures trading software packages that make 50% annualised gains a reality.While there are many good systems, there are also many that don’t perform. This article i ...How to Sell Effectively on eBay - Top 10 Tips Online auction is scorching the virtual world. More and more people are finding the virtual world a convenient way to sell as well as purchase goods. Many of them use online auction sites such as eBay to get their product’s worth.Auction sites such as eBay also house a myriad of products and it is very easy for one’s product to get lost i ...Pivot Points in Forex: Mapping Your Time Frame It is useful to have a map and be able to see where the price is relative to previous market action. This way we can see how is the sentiment of traders and investors at any given moment, it also gives us a general idea of where the market is heading during the day. This information can help us decide which way to trade.Pivot points, a te ...
|
