undervalued?, page-13

Green T,

I have also only relatively recently been looking at the U sector.

I think the medium prospects for U are good, but when you read around and just about everyone (except the anti-nuke brigade) say the price is way too low and "MUST" go up "SOON" . Mr Borshof of PDN has been quite vocal on this with PDN delivering lossess. I suspect with everybody shouting the same thing, prices will infact not rise for a while, and by "a while" I mean alot longer than people expect/hope. All the reasons that people quote for the price rise e.g.end of "megatons to megawatts", lots of new reactors being buiilt, Japan reactors coming back on line, no new investment at these low prices etc. etc.all seeming very real .... But they are all knowns, and known by lots of people so logically they must be largely factored into the current price (spot , medium and LT). Seems to me thart currently "unknown" information, events, or shift in the factors needs to occur for prices to shift substantially.

For that reason I have steered away from PDN,as it must produce and has very pressured finacicals and therefore is in my opinion in a very dangerous position. But if U prices did go up PDN would probably go up sharp and fast.

ERA is technically a producer, but is producing from stockpiles. It's real underlying activity with "Deepsi" seems to me to be more akin to an "emerging developer" albeit a very experienced one, with proven track record, and a 68% shareholder that has very deep pockets. So if (and when) conditions are right it can taken advantage, but if conditions are not rights it's probably "go slow" or "care and maintenance" without significant financing pressures to act otherwise.

For this reason my chosen U nvestment so far has been ERA.


I haven't yet looked at GGG which you have mentioned and that looks interesting, I woudl like to hear your and others conclusions on that one.

I am also now looking at perhaps something a bit more speculative at the U explorer end - and open to people's reserched ideas in that.