A Few Updates with Analysis
Friday, April 28, 2006

Ur Energy: So it seems that investors are beginning to realize just how undervalued Ur Energy was, as the stock has recently taken off due to some land deals that have added pounds-in-the-ground to their holdings in Wyoming. The stock is up about 33% the last week, and we expect further gains in the future. At this time we cannot comment on what exactly are the pros and cons of their land transaction in Canada, but that will be pondered as soon as we know something for sure. This is a stock that we are going to look at accumulating should it have a decent pullback or begin to consolidate.

Canalaska: What was one of our best performers has recently given back nearly half of its gains. This is leading up to the news of their drilling results, which were supposed to be out this month but due to delays will be released in May. So we wonder if someone knows something that we do not, or if this is just the speculators not wanting to take further risks. At this point, we are sticking around for the drilling results, and may contemplate adding to our positions. However this will be only if there is a buying opportunity before the drilling results have come out seeing how we just grew our holdings by 25% somewhere near the beginning of this recent pullback. This is one to keep an eye out for as it could easily double on good results, and get cut down to somewhere around the $.35 area on disappointing news.

Cameco: The keystone to a balanced uranium portfolio due to its industry leader status and the fact that it produces uranium as we speak. This is a hold as of right now, and we expect the stock to start building a base around this $40 area as oil is retreating.

SXRuraniumone: If Cameco is our Keystone, this is right next to it. It should become the next junior to produce which will instantly begin to line its pockets with cold hard cash. This is very important as the company will have the ability to leverage and the money to build at Honeymoon and its other projects in the future without diluting its current owners' equity. This was proclaimed “Our next Blue Chip” and it has hit a new 52 week high this trading week.

Paladin: Watch this stock, as it will have a mine opening up shortly after SXR. It may earn itself into that elite club of future blue chip status. It has also had a nice run lately, and we are looking to add on any dips.

Canwest: The stock seems to have its support around $6.50 area, +/- a few cents. Every time the stock approaches or closes at those levels it seems to have a decent percentage run from that area. I am no TA, and am not supporting day trading of this stock, but if we were going to add to our holdings at this time that is the area we would wait to add to our positions at. Also the newswire has been awfully quite from the company recently, and this should end sometime. Drill results should be out sometime soon, and if they are half as good as past results then it should provide some nice upside to the stock. Our last article may have sounded negative about the potential for loss of the oil shale holding, but that is not the case. Remember we own shares in this so we are looking for significant upside on the oil sands alone. This is after all the reason most got into this stock, an absurdly cheap play on the black sands of Canada. Regardless, down here in the States people are beginning to speak of the vast oil shales of the West. It will take years to develop that area to produce, but it is moving the spotlight to that area. It seems that the second play on CWPC is coming into play early (Oil Shale). This stock could take off once it is on the AMEX and people begin to discover all the plays on unconventional oil it possess. On the Hills alone (assuming the oil is in the shale as supposed, and it is economical to get it out) the company is grossly undervalued. The stock could go to $21 in a year if the Hills really do possess 3.4 billion barrels of oil within them and the company decides to move forward with the project. We eagerly await the news that is inevitably due out within the month on this stock (There is so much potential here, it is almost unheard of).

Lundin: The stock set a new 52-week high shortly after our story, and also set a new intra-day high in the same day. It has since backed off, but still has not crossed south of that ever important 100 mark (remember that we are not dealing with Dollars here). This stock should track oil until they begin drilling in Sudan after the wet season, if the situation in the south allows them to that is.

As an investor it is important to look for trends. Trends are everything, as I have learned, sometimes so much so that a stock can gravitate upwards for no reason other than they are in a trendy industry. Everyone remembers the 'internet craze' (companies with no revenues or profits with stock prices levitating to the stratosphere because a .com was at the end of their name) and the energy 'traders' (they traded a lot of energy, but it was sold between the same companies for the same $), but these are not the only trends that exist. Sometimes there are trends within trends, such as the uranium trend within the energy trend. That takes it below the surface, but what about trends within uranium? Well this is how money will be made, big dollars. You just have to find them, and already I have found a few. The one I find most intriguing at this time is what I want to call the 'Dines Phenomenon'. If you do not subscribe to his newsletter (personally not a subscriber) you can visit the various message boards and discover what some of his picks are. Well looking carefully many of his stock picks fair much better on big down days for uranium companies. Now this is not because he is a far superior stock guru than the rest of us, its simply that his followers listen to what he says, and he has stated that he’s in this for the long haul, not trading if you listen to his readers on the message boards. So his people are not only holding the stock as it goes down in sympathy with its peers, but at the same time buying on the dips! This adds support to the stock and stems losses.

Now I have been told through the comments on this site that maybe I should listen to Dines and like some of his stocks. Ok, great. But when I take a stock like Fronteer Resources Group (FRG) and state the reasons I would not buy it after a big run-up, that's my opinion. The stock went from $3.50 to over $7 in a short period, and was due for a pullback. I truly believe that your resources are better put to work elsewhere as this company will be working on bringing its projects online (nonuranium by the way). If you love gold and silver, which I think is a good investment at this point, then this may be a stock for you. But this brings up another concern for me which I will undoubtedly receive criticism for. Check out the bottom of the Mexican gold and silver release...”Fronteer may earn a 100% interest, subject to a Teck Cominco back in right, in both of these projects by spending a combined total of US $2.0 million over four years on exploration to be divided between these two properties.” Now that back in right, what exactly are the terms? Well you cannot find it on the company's website or in the rest of that press release, so I think this may be a subject to do some Due Diligence on. I agree that it would be great to gain 100% of this project, but what if the Mexican entity can exercise that right and steal back majority ownership of this discovery...? This is why I am not an FRG fan, and because of that I cannot be an Aurora fan with the taint of its parent company on it. Plus we want stocks that do not have parent companies behind them, because if they have parent companies behind them then they are not our investment vehicles, but rather the investment vehicles of their parent company. AND THAT IS WHAT AURORA IS. The name of this game is ASSET ALLOCATION, and we must wisely allocate our assets in order to get the highest rate of return on our capital.