the uranium bubble?, page-22

Posted by theflasherman - 14-07-05 20:12 - make a REPLY - browse to POST


Hi guys

I just want to throw a few curve balls in here and tell me what you think.

First, how many of the new wave of uranium hopefuls are in production? How many are likely to be in production in the next 2-3 years? It seems to me that unless you are confident that the prices are going to hold up for that time period investing in many of these minnows is a bit of a gamble.

Second, what happens if the government doesn't allow the uranium to be mined or sold overseas? I seem to remember a company from the past who had a vast uranium deposit only to slowly go bust because they were not allowed to sell it.

Third, you are paying a high price already for many of these shares so much success is already built in. Because of this, many shares have a poor upside/downside ratio.

Fourth, I note the price paid by BTV yesterday for some uranium acreage. Didn't seem like much of a price was paid, suggesting that the value of the assets is not that great.

Now before you all go off and get stuck into me, I'm just raising these issues as a reasonably inexperienced observer of the uranium market. However, I encourage you all to refute what I have said.

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A post from another website.

I have much respect for the poster involved due to his long history of reasonable posts.

Sure he gets it wrong sometimes(like JBM topping at under $5) but I understand the reasoning.

It is not a ramp(or down ramp).

Just a reasonable question, that we should all ask ourselves.

Cheers.