-- Posted Wednesday, February 14 2007 | Digg This Article
Article courtesy of www.stockwatch.com
Uranium was a hot topic of discussion on Saturday afternoon as James Dines lectured a capacity crowd about the enormous returns his radioactive metal investments have seen. About 900 people packed the Westin Bayshore's Grand Ballroom to listen to "the original uranium bug," who offered his thoughts on the uranium bull market. This presentation was part of the 2007 World Outlook Financial Conference organized by High Performance Communications Inc.
In a talk broadcast live via satellite from San Francisco, Calif., entitled "How Will We Know to Sell Uraniums?" Mr. Dines spent most of his hour discussing uranium and other precious-metal picks he has made in The Dines Letter.
Attendees were left wondering exactly when the radioactive gravy train might end; Mr. Dines did not give any indication that he expects to unload his interest in the increasingly expensive metal anytime soon.
Instead he boldly predicted that humanity is at a crossroads in its development, having "come to the end of burning things" for energy. A constant message throughout his talk was that it is not too late to get into uranium stocks.
Punning that "it is better to be Swedish then sour-ish," Mr. Dines made a few comments about areas he expects to rival Saskatchewan's Athabasca region. He noted Mawson Resources Ltd. and Continental Precious Minerals Inc. are already exploring the Scandinavian country. After mentioning Labrador as one potential uranium hotspot, Mr. Dines also touted Australia, cheering it as the future "Saudi Arabia of uranium." He especially likes Canada, Sweden and Australia because they keep investments safe from third-world conflict.
Mr. Dines's presentation was introduced by Michael Campbell, the host of Saturday morning's Money Talks radio show on Vancouver's CKNW and High Performance Communications figurehead.
Mr. Campbell also moderated the question-and-answer period with Mr. Dines, scheduled between 2:30 p.m. and 3 p.m., after the stock-picker's one-hour talk.
Gives glowing reviews
Having first recommended uranium at $8 (U.S.) per pound, Mr. Dines predicted the nuclear fuel would rise to $50 (U.S.), then $75 (U.S.) and now $100 (U.S.). He says prices could temporarily spike to $130 (U.S.) per pound.
Among the Canadian companies discussed, Mr. Dines specifically mentioned Mega Uranium Ltd., Denison Mines Corp. and troubled uranium giant Cameco Corp.
Mr. Dines first recommended Cameco, the world's largest uranium producer, in June, 2003, during one of his first pushes into the then-bargain-priced metal. After first buying at $5.21 (U.S.) per share, he sold the interest at the beginning of October, 2006, becoming a self-called "whistleblower" about the condition of the company's Cigar Lake mine. Pied Piper-like, he led his followers from Cameco before the mine flooded later that month. Responding to a question from the audience about the waterlogged mine, Mr. Dines expressed concern that "Cigar Lake might well be lost."
In addition to denigrating tying up money in Cameco, which he called "dead money," Mr. Dines expressed unhappiness with the newly merged Denison Mines, noting it is really "the old International Uranium [Corp]." He continues to list the company's stock in his newsletter, but is not buying right now.
Mr. Dines cheered a 552-per-cent profit from his Cameco investment, and told followers to put the newly liberated cash into Mega Uranium and Pinetree Capital Ltd. He likes the junior miner Mega and recommends that investors buy it and Pinetree Capital in tandem. In the January issue of The Dines Letter he calls these companies "two sides to the same coin."
Mr. Dines first recommended Mega Uranium when it was known as Maple Minerals Corp. as early as February, 2005. On July 29, 2005, a TSX Venture Exchange bulletin reported paperwork had been filed for an assignment agreement with a third party named James Dines. This deal granted 150,000 shares to that James Dines in exchange for the right to use the name Mega Uranium
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