UrAsia Energy Ltd. – Strong Buy

by JDH on November 25, 2006

Recommendation: Strong Buy

Alphabetically this is the last stock on our list, but based on it’s chart it should be at the top of the heap.

This is a beautiful chart. There was an obvious period of consolidation between June and October (the bottom red line), and a larger period between the high reached on April 10, 2006 at $4.01 (it closed at $3.68 that day) and the high of $3.75 reached on Friday. In other words, Friday was virtually a high for the year after a period of consolidation, which is exactly where we like to buy.

Also, the uptrend lines look good, and the MACD doesn’t look too bad, so it’s a strong buy.

The company is actually producing uranium, so it’s not a junior exploration play. However, it’s mines are in the Republic of Kazakhstan, which brings some geopolitical risk. However, having a diversified portfolio is also a good idea, so I’m buying. You can do more research on the UrAsia Energy Ltd.web site.


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