Stockchase Opinions

Steve Martin Uranium One Inc. UUU-T COMMENT Apr 18, 2008

Uranium industry is getting near its bottom, but you just don't know how long it is going to take. What will move this stock is when commodity prices start to move up. You should be in good shape in 18 months.
$4.670

Stock price when the opinion was issued

non-base metal mining
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BUY

It is finally starting to show some very interesting technicals. A nice little reversal pattern after a double bottom and a break out. Uranium went up 10% a couple of weeks ago. Seasonality is from mid-December through until May. A lot of uranium contracts are signed during this time.

DON'T BUY

By and large, uranium stocks are cheap but so is the pricing of yellowcake. Stocks had been slipping before the Russians stepped in to acquire this company. He would find the area at this point more speculative but can’t help but think that for the long-term outlook for uranium has got to be good.

PAST TOP PICK

(A Top Pick March 30/12. Down 0.36%.) Being taken over by ARMZ. Likes the uranium space so has replaced this with Cameco (CCO-T). Very optimistic on uranium prices for the future and this is a great time to pick Cameco up.

COMMENT

A Russian firm has made a bid for the remaining shares. It is unlikely there will be another one better that comes out so if you own, he would just tender to the offer. Doesn’t see any reason to own uranium stocks right now.

WATCH

Gives you a 5%-6% annualized return. Given the risks involved, he doesn’t own. If the arbitrage spread gets a little wider, he thinks it would be an interesting situation. Thinks they will get all the regulatory approval for the Russian takeover but it is hard to get a sense of the perfect timing for this transaction.

BUY

(Market Call Minute.) Exposure to uranium out of Kazakhstan. Likes it.

DON'T BUY

It is being taken over by its parent company. You have $0.08 upside. This isn’t the way to play the uranium space.

PARTIAL BUY

Looks like it was acquired. Looks at URA-N for Uranium. Cheapest most efficient way to get energy. Hundreds of reactors in the pipeline to be built over the next number of years. Maybe, there is a bottom forming. With a 10 year window this sector is extremely attractive but a lot of volatility until then. Half position at most.

PAST TOP PICK

(A Top Pick Nov 28/12. Up 8.9%.) 5% bond maturing March 13/15. This company was taken over by its parent, so the takeout price didn’t actually give much of an upside kicker to the convert but at the time he was looking at the company which had a decent balance sheet, very easily able to cover its interest costs and looked relatively cheap.

HOLD

Likes Uranium, but not UUU. Better names.