Nothing But Good News
Well this week so far has turned out to be very interesting, and good to those who were able to buy our before mentioned stocks. Canwest on Monday shot up on the release of more good drill results as well as a report that focused on the company and a speech by a Saskatchewan official speaking on the tar sands in the province. I believe it is apparent now to all that with the future listing of this stock on the American Stock Exchange pending and most likely to be approved (come on the stock trades over a million shares a day, and has a powerful uptrend) the stock should have no problem reaching $10 per share. In fact it could do this much quicker than we anticipated once it is listed because now mutual funds will be able to purchase the stock, and there will be those who will get burned by trying to be intelligent by shorting the stock. My view is that this company is a train traveling down a mountain at full speed (we all know how long it takes trains to come to a halt!) as opposed to a car. The only way the forward momentum on this stock is halted...or the upward trend is broken...will be for a steep decline in the price of oil or some unforseen political event in Saskatchewan. Ultimately after the company has completed its drilling program I believe that one of two events will occur:
1.) that it will be purchased by either an Indian or Chinese entity
2.)the company will sell part of its concession at a very rich price in order to move forward with development
Currently our stand on the stock is that you should ACCUMULATE by buying ON THE DIPS. We also believe that this stock will still hit $10 by the end of the year, and look forward to its listing on the AMEX.
Now a second surprise-they seemed to come in pairs this week- was that some of our uraniums shot up dramatically on Monday. There was not any news coming out of any of these companies around this time so we should give credit for this steep rally to the recent acquisition of Roughrider Uranium Corp. (a privately held junior exploration company) by Hathor Exploration. This deal was announced on Friday, promplty sending shares of Hathor higher by 100%! A double...in one day...on an acquistion! Plainly a bullish sign for this sector, because it tells me that investors view these purchases as "cheap" (thus the sharp rise in the acquisitor's shares) and necessary in order to achieve mass scale in and industry that could be labeled-dare we say- oligopoly.
CanAlaska (CVV.V or CVVLF) shot as high as 30% on Monday before settling in at around the 20% level. This is due to their portfolio of landholdings that mirrors Roughrider's, however it must be noted that their properties are larger by acreage, and APPEAR to be in more desireable areas (in other words closer to existing mines and "on trend" with them as well).
Another one of our recommendations, Strathmore Minerals (STHJF), is very similiar to CanAlaska in that they are land rich. However, Strathmore has over 100 million pounds of Uranium in the ground that is a historical resource. Now they only need to develop this in order to begin taking advantage of the high price of uranium...however the more they discover within the ground the more they will be worth in the marketplace.
There will be more to come on all of these companies, but today I wanted to take some time to explain the recent dramatic run-up in some of these stocks. At this point we we would be holding our small uranium companies and wait to buy more on a dip. It is not advisable to sell your shares and hope to rebuy at a lower level as bull trends are just that...trends that move from the lower left to upper right and no one can really tell when there will be a breather. So lets keep our exposure to these companies at this time, and add to our positions periodically.
It is our opinion that CanWest is a stock that can be bought all the way up to $7.50 and at that point we will review our options based on what has, or has not, happened to further decide our best options.
-theinvestar's Portfolio:
Past Recommendations
Canwest Petroleum*----------CWPC---------US$4.90_______+$1.53 or+33.22%
Cameco----------------------CCJ------------US$35.91_______-$1.42 or -3.95%
International Uranium-------IUCPF---------US$5.45________-$.26 or -4.77%
Paladin----------------------PALAF---------US$2.77________+$.28 or +10.11%
Strathmore Minerals---------STHJF---------US$2.25_______+$.22 or +9.78%
Canalaskca Ventures*---------CVVLF--------US$.449_______+$.071 or +15.81%
Titan Uranium--------------TUEFF----------US$2.11_______+$.14 or +6.22%
*Denotes a Company in which I currently own stock in before this article has been posted on the blog.
1.) that it will be purchased by either an Indian or Chinese entity
2.)the company will sell part of its concession at a very rich price in order to move forward with development
Currently our stand on the stock is that you should ACCUMULATE by buying ON THE DIPS. We also believe that this stock will still hit $10 by the end of the year, and look forward to its listing on the AMEX.
Now a second surprise-they seemed to come in pairs this week- was that some of our uraniums shot up dramatically on Monday. There was not any news coming out of any of these companies around this time so we should give credit for this steep rally to the recent acquisition of Roughrider Uranium Corp. (a privately held junior exploration company) by Hathor Exploration. This deal was announced on Friday, promplty sending shares of Hathor higher by 100%! A double...in one day...on an acquistion! Plainly a bullish sign for this sector, because it tells me that investors view these purchases as "cheap" (thus the sharp rise in the acquisitor's shares) and necessary in order to achieve mass scale in and industry that could be labeled-dare we say- oligopoly.
CanAlaska (CVV.V or CVVLF) shot as high as 30% on Monday before settling in at around the 20% level. This is due to their portfolio of landholdings that mirrors Roughrider's, however it must be noted that their properties are larger by acreage, and APPEAR to be in more desireable areas (in other words closer to existing mines and "on trend" with them as well).
Another one of our recommendations, Strathmore Minerals (STHJF), is very similiar to CanAlaska in that they are land rich. However, Strathmore has over 100 million pounds of Uranium in the ground that is a historical resource. Now they only need to develop this in order to begin taking advantage of the high price of uranium...however the more they discover within the ground the more they will be worth in the marketplace.
There will be more to come on all of these companies, but today I wanted to take some time to explain the recent dramatic run-up in some of these stocks. At this point we we would be holding our small uranium companies and wait to buy more on a dip. It is not advisable to sell your shares and hope to rebuy at a lower level as bull trends are just that...trends that move from the lower left to upper right and no one can really tell when there will be a breather. So lets keep our exposure to these companies at this time, and add to our positions periodically.
It is our opinion that CanWest is a stock that can be bought all the way up to $7.50 and at that point we will review our options based on what has, or has not, happened to further decide our best options.
-theinvestar's Portfolio:
Past Recommendations
Canwest Petroleum*----------CWPC---------US$4.90_______+$1.53 or+33.22%
Cameco----------------------CCJ------------US$35.91_______-$1.42 or -3.95%
International Uranium-------IUCPF---------US$5.45________-$.26 or -4.77%
Paladin----------------------PALAF---------US$2.77________+$.28 or +10.11%
Strathmore Minerals---------STHJF---------US$2.25_______+$.22 or +9.78%
Canalaskca Ventures*---------CVVLF--------US$.449_______+$.071 or +15.81%
Titan Uranium--------------TUEFF----------US$2.11_______+$.14 or +6.22%
*Denotes a Company in which I currently own stock in before this article has been posted on the blog.
posted by -theinvestar @ 3/23/2006 11:39:00 AM
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