quality specs - the eight elephants, page-50

CUX was a recommendation that initially didn't work for us. I watched it come off 72c, then we did some buying in the 20's and 30's. The stock was then caught up in the bursting of the uranium bubble and the GFC. It should be noted that CUX were one of the first ASX companies into Burkina Faso, however being a uranium play they didn't get much notice.

What I have found if you stick to the quality juniors is that even though the price may initially go the wrong way, there is always a chance to average down. We got this at 5c and 5.3c where new clients were able to gain an excellent entry price, whilst those caught higher were able to lower their entry price. Most books and trading systems will forever talk you out of this, however if you are onto sn excellent story I treat it more like dollar cost averaging. The high calibre and well respected management teams are the ones that can usually acquire the quality projects if they are unsuccessful with the drill bit.

I have met with Eupene, know the experience of the team, however wirh CUX there is a flurry of buying and there tends to be a lack of follow through news. In January this year I went through the stocks I covered, and put a 22c-27c target range on CUX even though the stock opened at 13c. (Year low of 7.8c which was also handy)

Even though we got out of trouble, and it was a 4 to 6 bagger for the fresh client money that came in I still think CUX hasn't yet lived up to its potential. I cannot complain on their timing of the REE announcement, and even though the catalyst was "off the side of the boot" you still take them.

On the uranium front I just don't know if we have put enough space between us and the stunning rise and collapse in 2007/2008 when prices peaked around $135lb. The flooding of Cigar Lake also gave the sector legs but there was that much speculative fervour in Australia, I remember exact moments sipping a coffee reading how we were all of a sudden in a "new economy" yet again.

Certainly a fan of CUX in the mid-teens and looking forward to what is shaping up as an exciting 2011 for a number of uranium juniors.

Cheers

Budfox