Shares of Uranium One (TSX: T.UUU, Stock Forum) topped the TSX’s most actives list on Wednesday, rising 16.4% to close at $3.12.
The Bullboard was buzzing. “There is nor[sic] reason for this increase .....unless news is coming down the pipe...” complained TTSB. The company hadn’t released news, and so others speculated on the reasons for its run higher.
MightyMorf offered:“It was just time to break out of that box. Yesterday failed to break 2.80. Today the break. Some shorts got caught off guard. & up UUU goes. If there is news UUU probably will trade over the 2.90 next run for 3.00. It was a good trade for those who took advantage off it. Lets see it break 3.00 & then we know somethings up.”
But, mid morning, Narmac noted that CIBC had initiated coverage of the company with an outperform rating.
The poster continued: “I am embarrassed at how many shares I own of UUU. I have been well overweight since the May report from Kazakhstan on the mineral rights. What would put the icing on the cake here would be a signing by the Japanese and a clearance blurb from the Kazaks on the rights. I am heading out later for beers,,,cheers to all.”
But with all the uranium companies rising mrmomo wrote:“After an almost 3 year hiatus, ethusiams [sic], money and confidence are all coming back to this beaten down sector. The question though, that for sure is on every hungry investor's mind is, "Is this for real"? Well, look around for yourselves and you should be able to answer all those questions with some degree of certainty. In my mind, the money was flowing back into this dreaded place way back late last year during the great crash. As average people were fleeing from about just every investment around, the big smart bucks were flowing into the Uranium space....again. I guess the markets will never change for the poor, small, simple folks. Now, with the recent action of some particular U308 entities.....the cat is indeed out of the bag. I predict that 2010 will be a barnburner for U308 and good ole Cameco will get things started with a grande ole purchase of a major player. Could Uranium One be in their sights? Possibily [sic]. If not them then who? Well, the short list is indeed short, that one could count the number of possibilities on a chicken's foot. Intersting [sic] times indeed.”
Finally, citing a temporary closure at BHP Billiton’s Olympic Dam copper, gold and uranium mine, mousey1004 suggested that uranium issues were heating up because of worries about a supply crunch. The mine supplies about 7% of the world’s yellowcake production.
