ESO Uranium - anybody familiar with this one?

[Trucker]

I saw ESO Uranium at the Vancouver resource Investment Conference. Nothing too impressive at the show but what caught my eye later was their huge Athabasca land package and the fact that they have enough cash to operate and do some conservative drilling until the end of 2008.

Their stock has dropped from $1+ to $0.24 range which pretty well says what the market thinks of its prospects.

Does anyone know anything about the management of the company and if they have what it takes to persevere through this?

[jjj000]

I know very little, but have heard of them - here is a brief on the company that may or may not provide some insight:

http://theinvestar.com/files/ESO_Uranium_Corp.pdf

[davidslane]

I held it during the initial uranium run up and it didn't do much for me compared to the others.

I have a hard time recommending any micro cap under say $0.50 now.

The ones that dropped below $0.50 worry me that there's not really much there.
Especially until the next big bull run (say in a year or two from now).

[sunseeker]

I agree with David.

Personally I wouldn’t touch it. For gamblers only.

This goes for all stocks:
The share price is right down now, and still falling (never try to catch a falling knife). Stocks that are falling can always fall a lot further than you ever thought possible. I realise it‘s only a 0.24 stock, so you‘re thinking that it won‘t drop much lower, but believe me it can. Pick up quality stocks, because when the turnaround comes it will be those stocks that will take off first, and you will be watching them pull away while your beaten down stock struggles to shrug off  the overhang of disillusioned investors. So my advice would be to stick to the producers, because  I believe that you will have made a nice profit out of those before something like ESO does anything significant.

Of course you could get lucky. Many years ago a stock that I held and had wrote off got taken over, it was a get out of jail free card that I wouldn’t rely on to happen again (I still made a loss. But at the time I felt relieved that I had got away with it).

[Trucker]

Thanks, I appreciate the advice. I have a fair investment in the producers and am looking around for a few micros with "gambling money". Its interesting that Casey's publications continue to recommend a high number of micro cap junior companies in anticipation of the mania phase in precious metals that would normally rise at the end of a bull phase.

It seems that the major correction has caused a giant hiccup and that the producers need to have a go again before the micro caps would see any daylight. I see some of that thinking spilling over to Uraniums and other energy issues.