Saturday, March 31, 2007


I think the old joke goes something like this:

Q: "How do I build up a million dollar portfolio in Junior Uranium Mining Stocks?"

A: "Start with 10 million dollars...."

All jokes aside, as documented here, (along with gold) Uranium juniors were a big pony that I staked the last year as I saw some other markets starting to get really "wobbley".

Junior Uranium is the new Internet, for better or worse. There are no earnings. Yet, many of these companies are up WELL over 100% since this summer....actually almost ALL uranium juniors are up a similar amount as a result of a production setback by the biggest miner of them all.

The reason that I'm bringing Uranium miners up again is this:

1.) neener neener neener -- "I told you so!!!" :)

2.) We are rapidly approaching a period of the year when junior mining shares generally do NOT perform as well .....mid-april-ish to september.

3.) i think some stock traders *may* look to book some profits if/when we move above 100/lb on the yellowcake (currently at $95)....Fortunately, the price of physical Uranium itself doesn't have a futures market, so most of the buying/selling is done by commercials and not speculators....although there are a couple of vehicles out there for giving traders the ability to take down physical supply off of the market further exascerbating the physical supply problems.

While there are lots of reasons that "this time it's different" one must be aware of tidal influences if one is going to surf the global liquidity wave for a living. The good news is, if you haven't already jumped on the uranium bandwagon there is a nice period here where you could have a chance to do your research, get set up, and get into a speculation or two during the "slow season" this summer.

If you're going to invest in the junior miners try to pick ones with proven URANIUM mining experience. Given the length of the recent downcycle these are very few and far between and will quickly winnow a list of about 300 down to 10 or fewer for you.

There are going to be a couple of companies that build mines of lasting values. And, there will be lots of people who throw their money away on speculative juniors that never become anything -- some of which will detail their foibles under pseudonyms while taking on the personae of balding, spotted dogs.....

p.s. for anyone crazy enough to think about speculating in junior mining shares, please take note of fubarrio's first theorem of bad luck (tm) as it applies to securities mentioned positively in a public setting and set your expectations accordingly. for the uninitiated, fubarrio's first theorem of bad luck predicts a decline in the value of any proposed speculation in the immediate aftermath of any mention in a public forum


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