Not a great week so far for uranium stocks

by JDH on March 1, 2007

So, are we liking this week so far? Yeah, me neither.

I had two stocks that were up on Thursday: SMD.V – Strategic Metals Ltd. and U.TO – Uranium Participation Corp. That’s it. Everything else was down on Thursday.

Since this has not been a great week, I asked myself the obvious question: is this a normal consolidation in a long term bull market, or has something fundamentally changed, leading us to a significant correction in the days and weeks ahead?

The Asian markets, particularly China, got killed this week, and since China is expected to be a great customer for uranium over the coming decades, there is cause for worry. In my view, however, unless China’s billion residents decide they don’t need power, I don’t think we need to worry for very long.

In fact, after reading all of your very insightful comments on the Buy High Sell Higher Forum this week, I have decided not to worry at all.

This is a normal correction in a long term bull market.

To prove my point, I have added a new page to this site, called The Case for Uranium, where I describe why uranium will continue to be a very important commodity for many years into the future. For those of you who have been following uranium for a few years there will be nothing new in my thoughts, but I have tried to find some interesting external sources to prove the point.

(Having said all of this, if we have five or six down days in a row, my tune will change by next week’s commentary). For now, I plan to stay the course.

{ 3 comments… read them below or add one }

john77 March 1, 2007 at 7:18 pm

It has definitely been a tough week so far. I’ve given back 9% of the gains from the year to date, although it’s still up about 19%.

The losses were across the board in my U stocks. Regarding the above comments by JDH though, do most people feel this is a consolidation in the U market, or is it more so a fall-out from the general sell-off occuring in the markets due to China?

If it is a consolidation in the U market, it is pretty darn steep.

davidslane March 1, 2007 at 9:47 pm

If the general market tanks, our uraniums, gold and silver will go down 40% with a big crash.

Will the market crash?
In a week, a month, this summer, this fall, never?

I’ll be lightening up a lot over the next 6 weeks.

I can get back in in the summer or fall.

Thoughts on the general market crashing?

davidslane March 4, 2007 at 10:53 am

Test message.

I posted another message that never showed up.

So, I want to see if this one does.

With quotes too “test”.