uranium sector during market correction, page-18

The majority of the Worlds top analysts and forecasters have been seen to agree on two constants happening in 2007 (regardless of any short term corrections apparently) and they are as follows:

1) 'that the Uranium price will increase to between $80lb. - $100lb.'

2) 'that the Gold price will increase to somewhere between US$700oz. - US$1,000oz.

* Uranium is well recognised as being 'inflation-proof'.

* Gold is well recognised as being a 'hedge against inflation'.

I would suggest that if there were to be any correction, it wouldn't be till late March, or early to mid April. The approaching 6,000 point barrier is seen by many as taboo - as they think the current market is overbought and cannot sustain itself beyond these levels. But as Alan Kohler recently pointed out, this market today is in far superior/better shape when you look at earnings, projections and yields than when compared with previous years when the markets had major corrections, and crashes occured. He stated recently that we were a fair/long way off being overbought and on on the shaky ground of yesteryear, and that the market could sustain itself at these levels for quite some time.
There is undoubtably so much good news around in a lot of sectors, and indeed in Australia in general.
There will be volatility - that is the nature of both beasts. But as most of us already know, volatility can often lead to the best buys on the market. Out of all the sectors that could/would be vulnerable to a/any short term correction, its my current belief that the Uranium sector would be the one to whether the storm the best, and come out of it the fastest and strongest. Its quite simply the best value story going around, and everybody knows it. And because its virtually a 'brand new' industry in Australia, everybody knows that its just going to get more valuable faster, and stronger for longer, as well as being more productive in the near future, than any other industry going around.

As far as Uranium goes, any change of sentiment by the market would therefore be short-lived in my opinion.
The Uranium sector is still in its infancy here, and will be here long and strong for many, many years to come.
The ALP will change their 3 Mine Uranium Policy - that there is no doubt.
That decision alone will open the floodgates to $millions, and possibly $billions of overseas money coming into Australia in the form of buy-outs, take-overs, mergers, exploration and investments in our fledgling Uranium Industry. More than a few years have been wasted already, bogged down and buried in bureaucratical red-tape and out-dated policies - the world's natural environment has suffered as a result and now we've got to catch up fast.
The World is in a hurry for guaranteed supply and just think - Australia held 40% of the World's known Uranium Resources before any of this started. That figure is likely to be much higher now after 18 months -2 years of solid and new exploration has uncovered many new and mineable resource reserves in Australia.

For the record, I hold the following 'U' stocks at this time, and together they make up 60% of my portfolio.
As follows:

AGS, UEQ, MKY

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