RE:RE:RE:RE:RE:Checking in on UEX analogPamplona,
I watched the interview with the Cameco executive and I thought he was very reasonable and articulate.
I lived through enough cycles to know that it is dangerous to draw a line in the sand and go 'all in' on a position -- especially if, like me, one is a contrarian and tends toward sectors that have been beaten up.
So, with that said, I tend to scale in to positions. I'm long FCU, not because I think there will be an immediate turn-around in the underlying price of uranium, but because I think they have the best prospects among the exploration companies and are undervalued relative to their mid to long-term prospects.
Given that the sector has been on the ropes, I think you have a lot of resource stocks right now that are like beach balls that have been surpressed under the surface of the water. They could have a decent snap back on anything favorable (or even just a temporary sector rotation as we saw a couple of times during '14) and then build over time should the fundamentals move more in our favor.
So I take a partial position now and then, if wrong on the timing, continue to scale in. On the other hand, if the maiden resource comes in above expectations, we have the potential for a gap that might freeze out those on the sidelines.
Have a good night.