Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Wednesday, April 11, 2007

Chart for Wednesday: Uranium Zoom, Part 2!

Our Red-Hot Asian Tigers portfolio is on fire!

Uranium stocks pulled back pretty hard in Canada yesterday, and that spilled over to Australia. In fact, the whole Australian market sold off today. This is just normal profit taking, and I expect stocks to head higher again soon, following gold, silver and crude oil.

But there were two noticeable exceptions to the sell-off. One was the stock that I showed you yesterday. It rallied, sold off, but closed unchanged.

The second is this chart here -- another uranium stock, also in our Red-Hot Asian Tigers portfolio ...
Meanwhile, global mine production is falling 45% of total demand. Resource Investor reports that at the Uranium Summit in Las Vegas, Doug Casey, who I respect a lot, said, "Uranium at “$200 per pound is not unrealistic.
Uranium is going higher, stocks are going higher,” said Casey. “You have plenty of time – all the money has not been made.”
Casey said the public is not yet involved. When people do catch on, the sector will get hotter and many more people will enter the market than the last time around, he added.
“This will be a bigger commodities bull market than we had in the 70s,” said Casey, adding that uranium will continue to reap the rewards.


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