uraniuminvestorsreturningfromhibernation

    In the past week uranium equities continued their march downwards towards this year's lows. In fact,
they even set a new yearly closing low in Tuesday's trading as indicated by our Canadian uranium index.
Trading sessions on Wednesday and Thursday provided a bump upwards for uranium stocks which is
what we would have expected and is quite healthy. In our experience this does not necessarily indicate
that the bottom has occurred, however it does indicate that at these prices there are traders out there
willing to take on the risk/reward situation the market is offering them. It does not solve all of our
problems at this point, but it is certainly a step in the right direction.

    Also, Tradetech announced that uranium spot prices had fallen $3 to $90 as a result of miners
needing to sell their material for cash flow purposes. Although uranium metal is still performing strongly,
uranium stocks, as before mentioned, are fairing poorly. Something will have to give soon as China
continues to announce further building plans for nuclear plants to power its growing energy needs. Most
likely the price of uranium metal will continue higher as the supply demand situation continues to favor
miners over utilities with miners being the beneficiary. Uranium mining stocks will undoubtedly move
higher once it is realized that the bubble has not popped, and that there is indeed a future for some of
these companies. After all, even though supply has grown in the past few years as projects have come
online in Africa, Asia and the United States (re-opened past producing mines), demand is increasing as
well with each new nuclear plant built.

    At this point, buying uranium equities which own uranium deposits or better yet producing mines
would probably be best. As we have said before it is our experience that the quality leaders nearly
always lead the pack out of rough patches and then the market performs the "trickle down effect" and
the riskier equities begin their rebound.

    Now it might seem that we here at theinvestar.com are simply uranium bulls and would not have it any
other way, but when you look back at all the events of the past 12 months, nothing has really
changed...except of course the value of many portfolios. The majority of investors in the world have had
their portfolios hit in the mortgage paper fiasco of 2007. The story surrounding uranium though has not
changed, there still is not enough mined uranium to supply the world's uranium demand and many of
today's mines face production hurdles, be they rebel groups, flooding, lack of infrastructure and
NIMBY/regulatory issues. This is not a problem which will be solved overnight, and in fact it appears that
bringing more supply online gets harder on a daily basis. Governments from Russia to Mongolia to
many found in Africa seem to be trying to take more control over deposits and are in fact delaying
projects with the uncertainty they are creating.

    Laramide (LAM.to) is a perfect example of the leadership we are talking about. In the graph
displayed below, you can see how it snaps back at the end of the chart. Now this is by no means a slam
dunk to continue, but it is along the lines of our thesis.