uranium oversold

Interesting article...

Kevin Andrusiak | May 01, 2008

Does anyone remember the great uranium bubble of 2007?

Actually, it's a bit too strong to say “great”, but it was fun for some while it lasted.

The uranium price has since halved and suddenly uranium is not so hot. In fact, in the fashion world, they're calling uranium the new white.

Foster Stockbroking obviously hasn't been down to Fashion Week in Sydney - it reckons the sell-off in uranium stocks by the market has gone too far.

“We believe the sell-off of uranium stocks over the past 12 months, due largely to the lower uranium price, has been overdone,” the broker told clients.

“As the overall industry fundamentals remain encouraging, we believe this will warrant a re-rating of the uranium sector.”

Foster's top uranium picks on the producing front are as follows: ERA - target price of $29.17 a share; Paladin - target price of $8.83 a share.

As for explorers, Fosters likes Alliance - target of $1.42 a share; Wildhorse Energy - target of $1.23 a share; and Silex - a speculative buy, with a target share price of $7.15.