Saturday, December 18, 2010

Position opened in November

I placed positions in DNN, UEC, URG, USU, and URZ in the first week of November. I believe these stocks could move upward over the next three years on potential demand and the decrease of uranium from destroyed ballistic missle warheads of the US and old USSR. I do not recommend this sector for anyone with a queezy stomach and they could bounce all over and since these stocks can gyrate up and down 20% a day, not to put anything in you cant lose. I think this initial move has formed a base for most of these stocks so getting in now should be ok. Best way to do it, is to wait for a bad day where these stocks dump somewhere in the 8-10 percent range and place the starting position here adding more if the stock continues to go down (cost averaging). Energy is the story of 2011, and this could be a very good sector. Look for new nuke reactor builds in the US announced this year to move these names up. States like North and South Dakota, Montana, and Wyoming could be nice little states with alot of open range to put these down outside the public eye. Thats just a hunch, but look for numerous new builds this year ok'd to push uranium prices up on the news, with the expectations we will see even more builds in China, India, and any other country that has too many people for their geographical and energy needs.

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