Red-Hot Resources

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Wednesday, March 28, 2007

New York Times Catches a Ride on the Uranium Clue Train

Well, it had to happen. The New York Times has an article about uranium on page 1 of its business section. You can read it here:

Some excerpts:

Prices for processed uranium ore, also called U308, or yellowcake, are rising rapidly. Yellowcake is trading at $90 a pound, nearing the record high, adjusted for inflation, of about $120 in the mid-1970s. The price has more than doubled in the last six months alone. As recently as late 2002, it was below $10. [XX Sean's note -- the price of uranium is now trading at $95 and was $91 last week]

A string of natural disasters, notably flooding of large mines in Canada and Australia, has set off the most recent spike. Hedge funds and other institutional investors, who began buying up uranium in late 2004 to exploit the volatility in this relatively small market, have accelerated the price rally.

Three relatively independent factors — dwindling supplies of inventory, low overall production from the handful of uranium miners that survived the 25-year drought and rising concerns about global warming — all have coincided to drive the current uranium price higher by more than 1,000 percent since 2001.”

So far this year, 2,700 new uranium claims have been filed with the Bureau of Land Management in Colorado alone. That is nearly half the claims filed in all of last year, and a big jump from the 104 claims for 2004.

XX My take -- the conventional wisdom is by the time that a trend appears in "the paper of record," that trend is over. However, the bull market in uranium has shown a talent for breaking all the rules. So while I take shorter-term gains on uranium trades in Red-Hot Canadian Small-Caps and Red-Hot Asian Tigers from time to time, if you're holding for the longer-term trend, there should be much further to go.

I do notice that two of the stocks recommended in my first uranium report, Denison and Strathmore, are mentioned in the Times piece. People who bought those stocks on my recommendation should be doing pretty well. But the Times is slow and plodding. It hasn't caught wind -- yet -- of the six rocket stocks in my SECOND uranium report, Small Uranium Wonders.

Those stocks should do at least as well as the stocks in the original uranium report. If you don't have this report yet, you can still get in at good prices. You can find out more by CLICKING HERE.


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