reiterating

One gets the impression that the CTS is very good buying at last night’s closing price of 53c.

I give the following reasons :-

a) CTS has been trading over 50c since mid-November 2006 (except for 2 weekly hiccups in the March and August correction weeks) … from a TA perspective, 50c appears to be the permanent floor on CTS

b) The 13 July placement of 10m shares at 50c to raise $5m “to expedite the Company’s entry into the Kyrgyzstan uranium project … and undertake a drilling programme for the Corochapi uranium project in Peru and resource expansion in Peru and for working capital” … so really, we are currently only a couple of cents off the price paid by the “sophisticated investor types” of the likes of Warren Grigor of Far East Capital; so you would expect that us “mere mortals” will be doing “sophisticated buying” at the current sp.


So what is the worst case scenario?

a) A volcano forming and erupting at Corachapi (a volcanic site) … slim chance … it might be of help to the Namibian miners that need to dig to “the centre of the earth” to get to the their uranium … but then agai, it may help in Corachapi, because they could ditch their picks, because that is all they would need to get to their near-surface uranium!

b) CTS being sold a dud? … you would think not … after all, the IPEA authority of the Peruvian Government has spent many years and effort in the area, and so have the half dozen or so Canadian TSX listed companies

c) Warren Grigor, UBS, Merryl Lynch and others ALL getting it wrong! … Let’s not kid ourselves, they have 100s of potential uranium explorers to park their dollars into, and why waste their time and money on such a small-cap junior! … And there is no doubt that they have done their sums based on a “high grade, shallow depth and quick-time-to-production resource”!


So here we are, waiting in anticipation for the Peruvian drilling results … hopefully out in the next week or so … and quoting from the recent annual report, CTS expects “a flow of positive results coming through in the last quarter of 2007”.

And a xmas bonus with a Mega “knock, knock, knock on the door”!