keep the faith

Subject: keep the faith in uranium stocks
Stock Code: URANIUM - URANIUM U92
Posted: 07/06/07 14:17 Hotcopper Radio: URANIUM on BoardRoom Radio
Posted By: Netaholic Views: 77
Post #: 1855109 (Start of thread) Sentiment: Buy
IP: 58.165.xxx.xxx Voluntary Disclosure: Stock Held
Keep The Faith In Uranium Stocks, The Wizard Says
FN Arena News - June 07 2007

The Tech Wizard has noted how investors and industry commentators have been struggling with the fact that spot uranium has continued to climb while shares of uranium producers and explorers have failed to keep pace.

He sees the current consolidation phase, which is occurring globally, as a normal phenomenon. After all, nothing can only go up in price indefinitely and it can easily be argued that some pockets of stocks in the sector had gotten too far ahead of reality, he says.



Looking at locally listed Energy Resources of Australia (ERA) the Wizard has observed how the consolidation phase has certainly impacted on ERA shares over the past two months.

However, from a technical point of view, he believes all is still looking well for ERA. Didn’t Macquarie predict this week spot uranium could well be priced at US$200/lb over the next fifteen months or so?

The Tech Wizard believes the stock has major support at the $20.00 level.


As with ERA (see above) shares of Paladin Resources (PDN) have experienced some serious headwinds over the past two months, the Wizard says.

Instead of getting scared because GSJB Were believes the risks are too high for the stock in the year ahead, the Wizard firmly believes investors should draw confidence from the fact that brokers such as UBS have put a target of $11 on the shares.

Expect to see some bottom pickers anytime soon now, he predicts.



Technically all is well with Paladin, the Wizard says. Paladin’s MACD indicator looks stronger than ERA’s and the Wizard has no doubt when stating the current price pullback should be best regarded as a buying opportunity.

The Tech Wizard has informed us he holds shares in Paladin.