re: yellow cake where it is heading?

Hi jovanco

Bloomberg MFURMDUR:IND (MF Global Uranium mid price) opened up at $67.24 on Fri 11 Mar and at 7:47AM ET popped up a probably quake related dollar and closed at $68.24. U share prices were mixed but mainly marginally up in North America

Your thought that [fundamentals point to a long-term upward trend in the price for the next five to ten years] is right particularly since U price not a major factor for megawatt producers. With prices oscillating the element of spectulation will always be with us to balance U prices [driven by commercial trading and physical accumulation].

I agree totally with you that [U equities tend to fly skyward much higher than the fundamentals of what's occuring in the physical market for uranium] and visa-versa as investors fail to consider the fact that price swings effect the mines based on the incremental cost of their production. By way of example gross profit on sales of a high cost mine (say $50/lb.) should be 28.6% if U3O8 price moves from $65 to $70 and this would be incrementally 23.8% higher than than at the $65 price - on the other hand a $15/lb. producer's GP should be 78.6% although incremental earnings will only be up 2.1% for the same price move.

Cheers