| Hot Uranium Mining Stocks Info |
Hot Uranium Mining StocksApril 03, 2008, This week's stock is something special. I know it, my team knows it, Marl knows it and by the time you have finished reading this email you will know it. And there is one vital reason I believe researching this company tomorrow could be the smartest financial move you make this year. First, I'd like to tell you about my favorite industry to invest in at the moment... Alternative Energy! Now usually I don't like "hot topic" stocks. Riding the latest wave usually produces mediocre results, since companies in "hot sectors" are usually overpriced to begin with. It's not uncommon for hot companies to have huge price to earnings multiples... In fact, one of the hottest companies, Apple has a 33.38 P/E ratio... In other words it would take over 30 years for the company to make back (in earnings) any money you invest. Forgive me, I digress... Because I've found what I consider to be an absolute rarity... A hot topic stock, that is virtually unknown! And this company is operating in the alternative energy field... But more specifically I'm talking about a silver-gray metallic chemical element in the actinide series of the periodic table that has the symbol U and atomic number 92. Uranium! Like I said last week, the US and UK economies, aren't looking healthy at the moment. Highlighted by the very recent takeover of Bear Sterns at just $2 a share. The markets may be headed into recession, but there are two commodities I believe you can count on... Uranium and Gold... Mineral commodity markets tend to be cyclical, i.e. prices rise and fall substantially over years. In the uranium market, very high prices in the late 1970's gave way to very low prices in the early 1990's. ... In fact they were below the cost of production... and mines were losing millions of dollars a month! But on cue, in 1996 prices recovered so that mines could produce profitably again... But since 2003 there has been a very very strong recovery. And because of this, and the mindset of consumers and investors that energy is scarce further forcing prices higher... Investing in these markets is I think... Recession Proof! And by what I've said you must be thinking that investing in Uranium as a commodity is a good move... But there's something even better. Whenever I investigate and find a commodity is heading into a bull market... I always... try and invest in a company which benefits from this bull market instead. You' see over the years, stocks have provided (on average) far better returns than any commodity. And pairing up a strong company, with a strong link to a commodity expected to increase in value... Is the smarter way to invest in commodities. And the company I've picked is a uranium exploration firm whom base their operations in Saskatchewan where high-grade ore can be extracted but most importantly (and here's the reason I chose this company): ... Unlike other Uranium exploration companies this one can extract the valuable mineral at extremely low production costs primarily because of where they are located. You' see the company own several large claim blocks, in a place called Athabasca Basin. This place is renowned for its low cost of production... and this affords the company a vital competitive advantage... Because Uranium is purchased solely on the price, (apart from if the quality is inferior)... Profit Margins are Slim... And therefore the ability for one company to have a lower cost base means they can charge less, and make more. In addition they'll have more profits to invest in exploration and they'll be able to continue operation even when times are hard. And this company have their own "secret weapon". One of the companies staff is a maverick of the mining industry: I cannot name him, but he has been in the mining industry for 18 years... And during this time he was instrumental in the discovery of million dollar gold deposits in Nevada and South Carolina. He has helped find mines which have taken companies to millions of dollars in annual profits. This guy is also an authority on professional geology, and is the author of numerous acclaimed publications. But most importantly for us, this company is operating in a "hot topic" industry... And it has been flying under the radar of almost every investor. In fact... This company is I believe undervalued even in comparison to normal companies, but in comparison to similar hot topic stocks... It's an Absolute Bargain! Now I must tell you, I don't usually like to invest in stocks that are undervalued. And by this I mean, for example, companies that are selling for $500 Million with $600 Million worth of real estate or oil or anything that can be fairly easily turned into cold hard cash. You' see stocks like this can be a bargain. And they are almost guaranteed profits... But it can take up to 5 years for the market to finally correct the price, and take into account the resale value of the factories (in this example). ... And so the only reason I chose this stock as a value play, was because... It is in a "hot topic" area... And so I believe the process of the market re-evaluating it could take... Just Two or Three Weeks! By the way, there is a strange, and unusual reason the company has kept itself "under the radar"... Michael Cohen. Top of this Hot Uranium Mining Stocks page.
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