Click the link way below to read Motley's mention... as since then the volume has been increasing steadily... price wise .26 cents appears to be a solid bottom for now... with a buy in the .26 cent to 31 cent area for entry as a point of low risk and wait for action... till then this blurb from the complete report .... takes you down speculation lane... My new indicator test shows this stock has some momo building and is in position to make a move. It has yet to test the last low properly, but is on the cusp of a cross up....
Take note that any reference to the singular person as in "I" in the following blurb means the author and not myself.
Two stocks set to take advantage of the trend
Two companies that offer very different degrees of risk are
Cameco (TSX:CCO) and
UEX (TSX:UEX).
Cameco is the biggest and most widely known of the Canadian uranium companies; therefore, it probably offers the least risk--and least reward. But even so, should the price of uranium climb to the $70-$80 range that some predict would make the required supply available, Cameco's shares could very easily double. The company produces 15% of the world's uranium and holds a growing portfolio of related assets . If there is a horse that will make it to the race, Cameco is it.
UEX takes us right to the other end of the risk curve, but with corresponding rewards. UEX is a purely developmental stage company. This is a company with just
six employees but it has interests in two sizeable potential operations in the northern portion of Saskatchewan, a region known as the Athabasca Basin.
The bigger of the two properties is Shea Creek. With an indicated and inferred (I+I) uranium resource that has been measured at 95.8 million pounds, this property hosts the largest undeveloped uranium deposit in a region that produces 15% of the world's annual uranium. UEX is a 49% owner of Shea Creek, with the other 51% being held by a subsidiary of AREVA, the French nuclear juggernaut. AREVA is the exploration operator on the property, meaning that UEX is basically along for the ride and acts more as a financier of the property's exploration and development.
Be aware
I cannot stress enough that UEX is a highly speculative way to enter this race. The company has no debt, but that's largely because there isn't a banker or financier in the world that would lend it a nickel. UEX needs the capital markets to continue with its development programs. The only reason I am willing to give it a pass is its links to two very prominent companies in the uranium space. The partnership with AREVA was mentioned earlier. The other relationship is with none other than Cameco, which owns 21.95% of UEX . This ownership stake has existed since July 2002, when UEX was formed to purchase the Hidden Bay project from Cameco. In addition to this ownership stake, should UEX ever be ready to produce, a milling arrangement with Cameco is already in place, as is a marketing and financing agreement.
The probability of UEX ever bringing either of these projects to production is incredibly low. Because of the huge amounts of capital required to develop a mine, and the already cozy relationship that exists with two of the industry's biggest players, the more likely scenario would see the company being acquired. With the two assets continuing to show promise, and given the bottom-dwelling price of the commodity, a takeout could occur sooner rather than later.
To be clear, the investment case behind UEX is entirely different from the one that surrounds Cameco. We want to be sure, however, that you are aware of the range of opportunities that are available in this space.
The long term
Betting on energy is a safe long-term gamble, since the world is in constant need for more of it. Purchasing an already significant but still-growing source of energy like uranium at a depressed price is just too good of an opportunity to pass up.
With an entirely favourable long-term supply/demand dynamic for the commodity in place, it's a good bet that the future stock prices for both of the companies that have been profiled will look nothing like they have in the recent past!
http://www.fool.ca/special-free-report/2-canadian-energy-stocks-on-the-cusp-of-a-powerful-long-term-trend/?source=cts401cs0010001
Dave GLTA
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