Uracan Resources Ltd. – New Recommendation

by JDH on April 10, 2007

I am pleased to report that the action on MGA.TO – Mega Uranium Ltd.that I described here yesterday ended up as expected; Mega opened today up as high as $8.98, and then settled back. I sold at $8.66. I still hold lots of Mega, but every now and then you have to take some profits. So what to do with the money?

I have a new recommendation today: URC.V – Uracan Resources Ltd.

According to the Uracan web site, “Uracan Resources Ltd. is exploring for near surface, bulk tonnage uranium deposits in Canada, as this style of deposit can be developed quickly and inexpensively. The company’s first two projects have abundant historical data showing several pounds U3O8 per ton over large areas, are easily accessible and have year round access.” I’m a big fan of low cost uranium. Management also has many years experience in the mining industry.

Even more impressive is the chart:

Uracan Resources Ltd.

I like the fact that Uracan corrected back to the uptrend line that started in October, but didn’t break down through it. I like that the consolidation appears to have ended, and we are still early in the move upward. Best of all, I like the RSI, just breaking through the 50 level on the way up, which is a great time to buy.

I started buying this morning, and plan to build a position equal to around 2% of my portfolio. Obviously this is a speculative plan, but I like it.

(As an aside, I am also picking up more SMD.V – Strategic Metals Ltd. today; it looks poised to run, having traded at $1.00 for the first time ever this morning).

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