Uranium One Inc. (UUU-T)

Likes Uranium, but not UUU. Better names. 

(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.

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.

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

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

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.

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.

(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.

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.

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.

Likes this company. Outlook for uranium is pretty good and these guys are the top producers out of Kazakhstan, probably the 3^rd largest producer globally. Demand for uranium is slowly starting to come back. Supply is tight.

He does not invest in resource stocks. Uranium has a problem in that there is a lot of skepticisms about reactors and the growth of them. They also have a financing risk which is dangerous.

Looks at where China stands in their development of projects and looking within the pipeline for the next number of years, he sees demand going higher. There is a tightness of supply. Great growth profile. Going to 12 million pounds over the next year. Thinks there is a large player liquidating the position, which has held the lid on the stock. If you start to get through the supply as it disappears, at some point this thing could really pop.

As with other uranium stocks this has been a legacy of the Japanese earthquake. Demand for uranium stocks is going to be constrained going forward. Thinks it is dead money in the meantime.

5% bond maturing March 13/15. This is a convertible debenture. There is a bit of an equity kicker to this one as stock price could go back up.