GREY:STHJF - Post by User
Comment by
presto10on Nov 15, 2008 12:40pm
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Post# 15588624
RE: Uranium strong
RE: Uranium strongI just listened to the URE conf call and they provide a good overview of the U space; they have reiterated what I've read previously - the spot price has been driven low by sellers who have HAD to sell. They think the floor is $50 in the longer term but have no idea in the short term. U production in the US is 7% of US demand and 2008 will be the first decline in US production in 4 years, at under 4 million lbs. There are only 7 US producers and 3 of them will be stopping in early 2009 - ISR ops. Comments about desperate companies out there running out of cash. My feeling is the U space is real and there are great opportunities out there w/ a longer term perspective but you must be in companies loaded w/ cash and a realistic short term (1 or 2 year time frame) road to production.
In a sense I equate jrs with big reserves in the ground like North Sea jrs. It used to be a Sterling would make this big announcement and the stock would take off, the insiders & pros sell and we get our heads handed to us....until the next big hit. and we do it all over again. Today big strikes mean nothing because the bigger curse is to get financing to get the oil out! Anyway for the next year and more, it's all about cash flow and real operating companies, not stories that conclude w/ Freedom75.