GREY:SXRZF - Post by User
Post by
chendiggleron Mar 13, 2008 3:12pm
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Post# 14655001
UUU recomended by Peter Schiff
UUU recomended by Peter SchiffI recently received a report by Schiff called Global Investor Newsletter.
In it Schiff gives two recommendations, one a Canadian Uranium miner. He wrote this about the company.
Our first company selection comes from the Uranium industry.
The company is a large mining group, based in Canada, with world-wide operations. Two of their properties have caused investors pain. Their stock price is off about 70% from its April 2007 highs. One of the reasons for this pain has been the potential loss of company-specific uranium supply.
One site of potential loss is in South Africa. In South Africa, the government mismanaged the electrical infrastructure to the point where electricity has been rationed to miners. This in turn has caused supply to drop and prices to rise. The company reported at an investment conference on Monday, February 25th that they have installed diesel generators to supply their mines with all the electricity they need. Problem solved.
The second potential loss dealt with acquiring a raw material necessary to process their uranium in a 3rd world location. At the same conference they announced a supply agreement with a nearby country and that they had entered into an agreement with the host country to process the needed material by 2010. Problem solved here also.
Based on this description and the price movements mentioned, this is clearly UUU.