AEX 0.00% 1.1¢ acclaim exploration nl

why the right uranium stocks could shoot even

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    Why The Right Uranium Stocks Could Shoot Even Higher…

    When it comes to commodities, the "law of leverage" applies in spades. As the commodity moves, so jumps the underlying stock. That means you could turn the shortage in uranium into huge profits by investing in the stocks that are best positioned to soar as uranium climbs in value.

    Commodity prices have significant leverage power on stocks… and that's the case with uranium, too.

    Although the cost to produce a commodity doesn't change, as the price spikes each ounce becomes exponentially more profitable - and companies line their pockets with profits for shareholders. For instance:

    In the gold market, during the three years ending March 2006 the price of gold popped 70%, yet Miramar Mining popped 200% in the same three-year timeframe… and Tan Range Exploration jumped a whopping 650%.
    Now look at oil… From January 2003 on, oil prices jumped 100%. Yet, industry leader Sunoco climbed 545% in three years… and Valero rocketed 645% in the same span.
    One more example: As the People's Republic gobbled up imports to make refrigerators and engine blocks, the price per pound shot up 70% in four years. Yet, Empire Resources in Fort Lee, NJ jumped 1,257%, making it one of the fastest growing stocks in the U.S. It leveraged out to nearly 17.9 times the gain of the underlying commodity. Investors got filthy rich…
    Frankly, no analyst can know anything for sure in investing, or exactly how high the price of uranium will climb. Or whether the leverage factor will run 6, 10, 18 times or higher
 
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