Posted 19 April 2007 - 09:43 AM
Thanks, John. I'm sort of in Never-Never land right now, wondering what comes next. If uranium oxide goes on up, then the party continues, IMO. If the price ever takes a step backwards, I bet that'd REALLY provoke a sell-off.
Most of the stuff I follow in the U sector is already 10-20% off the recent highs. Very normal-looking correction, same as has so often been the case over the last few years, but one still wonders when the party will end for good. Some of the seriously junior explorers have already stopped me out (and may be close to bottoming/getting into another buying opportunity IMO).
Beyond the spot price of U3O8, some producers have been locked into longer-term contracts where they're compelled to sell well below the current market price, and their production hasn't kept up so they've been forced to buy on the open market, above their contractual sales price. This will work itself out over time, and producers like Denison Mines will benefit from it. Denison, DML on the Toronto exchange, is supposed to start trading on the AMEX today as DNN.
I've been looking for prices to go parabolic for some time, and.... maybe they already did. If so, then at the least giving more weight to actual producers and companies soon to produce will likely do better than going with the most speculative firms, wildcat explorers, etc. If the market is "maturing," etc., and blah blah blah....
I don't know what to do other than not try to get cute; keep my eyes on the charts.