Bill Cara: It's a glowing world, Fri., Sept. 15, 2006, 10:13 AM

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September 15, 2006

It's a glowing world, Fri., Sept. 15, 2006, 10:13 AM

As you know, I am a proponent of uranium. I am shocked at recent commodity prices, but I understand the demand factor.

Today Toronto's Denison Mines is up $1.00 (about +6.5 pct). Traders can't seem to buy enough here at C$16.50. They have read the Globe & Mail report today.

But three weeks ago at $14, I read you an e-mail from my closest mining associate who said that, yes, he was still working on the Crystallex data and preparing a report, but he was also caught up in Denison. So I passed along the heads-up.

DEN is up +18 pct in the past three weeks, so that was quite a heads-up.

I am presently flipping the pages of a new text, entitled: "Investing in the Great Uranium Bull Market; A Practical Investor's Guide to Uranium Stocks". It's published by StockInterview.com.

This text is an amalgam of research and market data on the uranium industry and the public companies that are developing it. As you can imagine, there is a lot of vim and vinegar in this sector, and truly the promoters are on a roll.

How long that continues, I can't say.

I did publish some excellent Deutsche Bank research here in the not so distant past, which might serve you well to review. Just don't get sticker shock when you see how far some of these companies have come in the market since then.

Denison trades mostly on the TSX as DEN. It also trades in the US OTCBB market as DNMIF.

I am reluctant to tell you about Denison at this time because traders are chasing it, but should the broad equity market suffer a major downshift in coming months, Denison might be interesting.

As I recall, it was James Dines, when I met him in Toronto a couple years ago, who first told me about his call on uranium. James has an amazing track record as an investment analyst.

btw, Denison is Number 2 uranium miner in Canada, next to Cameco (a Cara 100 company).

Cameco Corp [GICS 15 and 55, Cara 100]
(CCJ: Yahoo Finance file)
(CCJ: StockChart chart)
(CCJ: Investertech chart)
(CCJ: ADVFN Financial Data)
(CCJ: ADVFN Financial Data)

Posted by Posted by Bill Cara on September 15, 2006 10:13:02 AM | Category: 15 Materials

Discourse

Do you think they are driving some of the huge increases in costs & demand for uranium themselves with U.TO, their Uranium fund, which holds uranium similar to GLD?

Posted by: wavesmash at September 15, 2006 11:11 AM [link]

I've been a Dines subscriber for many years and he has been on the uranium bandwagon from early on.

Posted by: AlaBill at September 15, 2006 1:48 PM [link]

USEC INC (USU) provides low enrichment uranium to nuclear facilities. The stock has fallen with RSIs of approx. 31, 24 & 34. I've followed it on one of my watch lists. (It has a decent divedend to boot for those so interested)

Today, it traded a few hundred shares at 9.40 at 12:29, then all of a sudden there was 70K shares traded at 9.68 (although the bid/ask was around 9.40 with a lot of other posted bids nearby this price), followed shortly thereafter with a hundreds sale at 9.39. A little while later there was another block tade of 59K at 5.45, only to return to the 5.40 area. I had to leave due to another engagement but upon returning note volume was above average. I suspect some fund buying but don't know.

No position, although I did have a bid which was not filled.

Bill--what's your thoughts on this type of trading pattern?

Posted by: Seamus at September 15, 2006 6:14 PM [link]

Bill, ROBTV had two segments on Friday (9/15) about Uranium miners.

4:50 PM ET
After Hours with Jim O'Connell and Kim Parlee
Denison Mines In Play
Jim Mustard, senior mining analyst, Hawyood Securities
Duration: 6 m 2 s

(Mustard sees a high of $55 in the spot price for Uranium this year and an "avalanche" of consolidation.)

6:00 PM ET
Stars & Dogs
Uranium Prices Keep Up the Chain Reaction; Has Motorola Peaked? Ebay Ready to Rebound?; Hasbro's Rally Has Legs, Hitachi's Fuzzy Picture
Duration of the segment on uranium was about 14 minutes.

(Reports Peter Grandich calling for $75 price on the metal. Also warns that hedge funds are plunging into market on a speculative basis -- is a bubble forming?)

Posted by: number2son at September 17, 2006 11:44 AM [link]