Hard to Find Bargains in Uranium Stocks

While accumulation an amend to our accepted uranium guide, we advised added than 150 companies in hopes of award a scattering of undervalued uranium stocks. Bargain hunting is accepting harder in ablaze of the atom uranium amount extensive a almanac $85/pound endure week. Perhaps, that is why drive investors today angry to cheaper inferior uranium analysis companies for a bigger deal. Analysis juniors on the TSX-Venture banal barter afresh exploded higher. But, these weren't the companies with the bigger affairs on the horizon. Abounding accept yet to ascertain a aroma of uranium, let abandoned proceeding through the development stage.
Several U.S. avant-garde date uranium companies, whose projects are getting developed for assembly aural the decade, one of which is already producing, accept torn out. Four of the companies we advised on the American and Over the Counter Bulletin Board are absolutely alluring investors.
Thirty-year old Uranium Resources (OTC BB: URRE) is afresh abutting attrition at contempo backward November highs. The banal chart's circadian About Strength (RSI) is ascent which is encouraging. Bazaar assets stands at $309 million, which charcoal almost low compared to abounding companies in the amplitude which may never aftermath uranium. Uranium Resources is one of a scattering of U.S. uranium producers. In 2006, some of the company's uranium mining helped accord to the accomplished assembly year back 1999.
While Uranium Resources lagged the group, Uranium Energy Corp (OTC BB: URME) has been authoritative up for absent time. Back aboriginal October, investors could get a nosebleed watching the company's shares soar. The company's affairs looked activating this accomplished April if we interviewed the company's arch operating administrator Harry Anthony about the mechanics of the In Situ Recovery uranium mining operation ("Reversing Mother Nature") for our uranium guide. It appears the aggregation is affective advanced in bearing uranium in Texas afore the end of this decade. Bazaar assets stands at $269 million. The banal chart's circadian About Strength appears to mirror three antecedent overbought peaks, heralding a near-term amount decline.
Energy Metals Corp (NYSE: EMU) aswell reflects antecedent overbought altitude on the banal chart's circadian About Strength. In our antecedent account with the Dennis Stover, the company's engineering authority - a commensurable to Harry Anthony and both are buddies, Dr. Stover insisted Energy Metals would be mining Texas uranium in backward 2007 or by aboriginal 2008. Shareholders accept watched this aggregation jump from the TSX-Venture to Toronto's TSX to the NYSE Arca in about a year. The aggregation has digested a amount of abate companies in 'business combinations,' over the accomplished year, and could add added to their acquired account in 2007 or 2008. Energy Metals approaches the US$1 billion level, accepting ahead eclipsed that in Canadian Dollars on the Toronto. And we bethink our aboriginal affair with an Energy Metals geologist if the banal traded for beneath than $1.50 in Canadian dollars. Endure was $12.20 in U.S.
Uranerz Energy (Amex: URZ) has the everyman bazaar assets in a associate accumulation of acceptable uranium producers by the end of this decade. The aggregation is active close with Uranium Energy, which is in Texas, on allowing two of its Wyoming backdrop for production. Both companies accept accurate engineers and abstruse staff. Uranerz Energy has arch controlling Glenn Catchpole, who was active in bringing Cameco Corp's Inkai uranium abundance in Kazakhstan to the aboriginal appearance of production, step-by-step over six continued years in Central Asia. Kazakhstan may be assertive to become the world's better uranium ambassador over the next decade through band-aid mining agnate to the techniques Catchpole will use in Wyoming. Bazaar assets is an awkward $213 million, but absolutely a bit college than it was in mid October, if you could buy shares for able-bodied beneath $2 (albeit briefly). The American Banal Barter has added acquired trading to Uranerz Energy's shares area investors can barter put and alarm options. Until recently, the accomplished bang amount was $5. Now, it's $10. We assumption the Amex specialist appears optimistic on added amount acknowledgment in Uranerz shares.
In reviewing the top three uranium companies against the basal three uranium companies, about to bazaar capitalization, there is a arresting anomaly. Those with the accomplished bazaar assets are dual-listed in Toronto. The companies with the lower bazaar capitalizations are alone traded in the United States.
This should end the rumor that U.S. investors accept bent assimilate uranium stocks. It does affirm the hockey-loving Canadians are still snapping up shares in their admired uranium companies. Who would accept anytime anticipation that advertisement on a Canadian banal barter would account the bazaar assets of a U.S. listed company? In the case of uranium stocks, a bifold advertisement on the Toronto barter is as adored as the aerial amount of yellowcake.
Comparison of U.S. Listed Uranium Companies by Bazaar Capitalization
(As of February 26, 2007)
Company Barter Symbol Bazaar Capitalization
Uranerz Energy American URZ $213 Million*
Uranium Energy OTC BB URME $269 Million
Uranium Resources OTC BB URRE $309 Million
Fronteer Accumulation American FRG $797 Million
Energy Metal NYSE (Arca)EMU $932 Million
Cameco Corp NYSE CCJ $13.93 Billion
*Lowest Bazaar Assets of Top U.S. listed uranium mining companies.