Uranium stocks

I found URRE is on Nasdaq now. So now we have following uranium stocks traded on main US exchanges:

1. URZ
2. FRG
3. EMU
4. URRE
5. CCJ

I like all of them, and think the top four may have greater risks, but can have greater returns than CCJ.

Uranium hits $113.

It's possible there are more momentum in uranium and push the price over $150 this year, that will be really good for uranium stocks like URZ and EMU.

Following are my uranium stock ranking, and I'll continue to add positions accordingly:

1. URZ. Very speculative, since it's small and it's the only one traded on AMEX and with options, a great momentum play. Very risky.
2. EMU. I think out of all the uranium stocks I can find, this one has the best value, with over $260 mlb of reserves. And it's in U.S. It's traded on NYSE Arca, so not many people know this stock, which is great if you want to get in early.
3. FRG. Traders' favorite, valuation is not as great as EMU, or even URZ.
4. CCJ. The biggest pure uranium play.

Maybe it's time to add uranium stock again.

Uranium hits $95 this week. Maybe it's time to add uranium stock again. I really like to see the market finish its correction before I add uranium, but maybe it's a mistake? I think a sharp correction will give me better entry on uranium stocks.
Continue to watch following:

1. URZ
2. EMU
3. FRG
4. CCJ
5. USEG

Wait mode

I'll wait for the market to bottom before I start to add uranium stocks again.

On my list:

1. FRG
2. EMU
3. URZ
4. CCJ

Uranium stock ranking

Consider reserves, rewards, risks and financial strength, I like following companies to own to play the great uranium bull markets:

1. EMU. Market cap 940M. I think it has the best potential with over 260m lb of reserves, pure uranium play. High risk and reward.
2. URZ. Market cap 178M. About 13 to 26 m lb of reserves. Pure uranium play. Very speculative play, high risk and reward.
3. FRG. Market cap 774M.. About 90 m lbs of reserves, which it owns 47%. Also a gold discovery company. Speculative play. High risk and reward.
4. CCJ. Market cap of 14B. Largest pure uranium company. Low risk and reward.
5. RTP. Market cap of 75B. Mainly a steel and iron company. Low correlation to uranium.
6. BHP. Market cap of 137B. Mainly a copper, silver, zinc company. It does have one the largest uranium reserves in the world. Again low correlation to uranium, very low risks.

Uranium spot price hits $85 per lb

1. Weekly Spot Ux U3O8 Price as of February 19, 2007 is $85.
2. One week ago the price is $75.
3. Source: http://www.uxc.com/review/uxc_Prices.aspx

Uranium stock comparison

1. CCJ's uranium reserve is the largest among pure uranium stocks. It has over 805Mlb.
2. EMU has 260M lbs.
3. FRG has 58M lbs, plus 32M lbs of indicated, which it owns 47%.
4. URZ has 13M lbs, up to 26 M lbs.

Based on current Uranium of $75 per lb and cost of $30 per lb, from uranium only, I calculated the worth of the uranium reserves:

1. CCJ: 36.2B.
2. EMU: 11.7B.
3. FRG: 1.9B. (Factor in 47% FRG owns).
4. URZ: 585M to 1.2B.

Market cap of these companies:

1. CCJ: 12B.
2. EMU: 800M.
3. FRG: 740M.
4. URZ: 130M.

Of course, I have not consider the gold reserves FRG has, and CCJ's reserves have two underground reserves, which don't use ISR method to recover and the cost may be lower. But one of the underground reserves is Cigar Lake, which is flooded and won't bring it online until 2008 or even 2009. BTW, Cigar Lake can produce 24% of world annual demand once it's fully operational, this is how big the impact it has on CCJ and rest of the junior uranium stocks.

Other factors, such as permit, local government application process, the quality of the reserves, etc, are not considered in my calculation.

But from valuation perspective, EMU has the best value, URZ is second, CCJ third.

If uranium, as experts predicted to reach to $200 in 3 years, then all these companies can easily triple their stock price.

Once uranium becomes cover story on Times, then it's time to sell. Maybe a few years away.