Stock Market - May 19 - 23, 2008

[davidslane]

Sunday Night Fever

Wow, look at Australian mining companies on Monday, May 19!!!


How about some of those Aussie uraniums.

Paladin:                                      +12%
Energy Resources of Australia:    +9%
Summit Resources:                      +10%
Arafura Resources:                      +18%
A-Cap Resources:                        +45%


Maybe those buyout rumors are true.
I wonder what's moving those companies.

[punter]

Good eye DSL . It's only been a couple of days that CCO announced thier intention to aquire and why. Many people even pro's are just getting it. maybe. Who's it gonna be,first and then who next ? That's the kind of hype/hope/speculation that will bring the u's back.

I don't know if anyone reads Jack Bass and his The Apprentice Millionaire Market Letter and Blog. He takes the biz seriously and puts some good information. Todays blab is worth reading I think. Some good points.

GLTA

[TheSlowLane]

Uranerz is getting good follow through after the positive action at the end of last week.  So far, so good.  We'll see what happens with the rest of the sector when the Canadian markets are open tomorrow...

[davidslane]

Looks like I was wrong about the imminent end to the May uranium rally.

Definitely have to admit when I am wrong.


There's a nice bit of movement across the board in uranium stocks (even with the TSX closed).


FRG is running up along with the Australians today.


Seems there is still fresh money ready to push these higher.

I still don't think the rally will hold and that profit taking will push these stocks back down to where they were a few weeks ago, but it does look like there's a bit more money to be made before this rally is over.

[TheSlowLane]

dsl - I find your caution to be encouraging.  I still don't think we got much of a sector rally.  There have been a handful of stocks that have seen some renewed interest, but most of them still seem comatose.  Maybe that will be the case for the next upleg, a rising tide will lift only the boats who have their hulls intact.  Maybe we will see new lows, that would be the typical seasonal pattern, but there is a possibility that we will get the opposite of what everyone has come to expect.  Markets are sneaky and tricky like that. 

In some cases, like UUL.V, for example...I have no idea why the stock rallied so hard.  There was clearly capitulation selling but somebody took everything offered at .14 and then drove it up to the mid .40's.  Given the volume that drove it up, it's hard for me to see that one making a new low since so much of the float has changed hands, but nothing would surprise me anymore.  Also, I know that Puplava has been accumulating U stocks (or says he has), but has been somewhat quiet about it while he was still buying.  It seems that they are ready to put more of a focus on the sector now, though, and that seems to be representative of some renewed interest I have seen lately.

tsl

[punter]

The rally in FRG and AXU can be partly attributed to the big thumbs up thier community plan strategy has had from the native opposition. It seems like bribery is always conducive to a bit of civil action in Canadas native pop. and PR from AXU has been excellent, hence the 12%  uptick Friday. IMHO.

FRG and CCO are both Uranium and Gold. FRG is adding reserves in both at lost cost as opposed to CCO whose reserves are in Russia with Centerra and decreasing and the U reserves ere hneed expanding. Who better to deal with the bushmen of Labrador than a Canadian Icon from Sakatchewan already plugged way in to the power machine. HMMMMMMMM, Hello Peter Farmer. Would'nt FRG be a good fit? S'cuse while I wipe a bit of drool up here.


GLTA

[jjj000]

I would think Cameco would be looking to jump on this opportunity...

Honeymoon uranium mine on hold
http://www.news.com.au/adelaidenow/story/0,22606,23726318-5003680,00.html

Unless that Honeymoon mine is such a lost cause.  But it would be good PR for either company, and the sector in general, regardless of whether or not it worked out in the end... I would think...

[ozmga]

There's big things in the wind down under.

http://m.news.com.au/BreakingNews/pg/1/fi187503.htm

The market seems to be very slow in picking up the significance of this.

[TheSlowLane]

Excellent action in a few of these U stocks today.  URZ got smashed down at the open only to bounce right back and hit $3.  Strathmore just started moving, up over 10% now.  EFR.to is seeing lots of volume, but pretty much just holding steady.  There seems to be a never-ending supply on that one, but these things tend to go on until it seems like it will go on forever and then it reverses...

[TheSlowLane]

Make that 14%...

[jjj000]

definitely some interesting action: MAW, UEX (which missed the last rally), URE, FSY among others.

Good jump on UUU as well... whether that has anything to do with the news about Honeymoon or not I have no idea.  In fact, I have no idea about any of these moves.  Too early to make a call though... will just watch and ride.

FRG/AXU... I give another 10% upside before profit taking brings them back down.  The community outreach stuff is nice, but of no real impact in my judgement.  I think if the bribery angle would have worked, they could have pulled it off on that one guy whose swing vote made it 8-7 against them back at the meeting... that still ticks me off...


OT: Interesting to see the major solar stocks are *not* flying high as oil continues up.  They may be out of gas... no pun intended.  Some of the smaller Chinese stocks have been flying, but the big boys like FSLR and SPWR are fighting resistance.  I got my ass handed to me for a while on my FSLR short, but I held on and am at least now back to even.

[Bottomfeeder]

 

[whatsupdoc]

Today was a very  encouraging day for the sliver, gold, and u-stocks
in that they decoupled from the major indices and went up with nice
gains on up volume.  The fact that gold zipped past resistance at 900
to close at 919.55, and sliver zipped past 17 to close at 17.62, and USD went
down 63 cents to 72.41, and oil closing at 129.07 certainly helped.

Most of us should now be seeing our metals portfolios with gains above that of
what we had at the end of the day on May 9.

For those of you who haven't done so already,  check out  Mervs blog today
at http://techuranium.blogspot.com  that has a chart that shows his index of 50
stocks out of the confining box.

[Bottomfeeder]

Quiet in here tonite, you would think there was a big sell off!!!!

Looking at some charts it appears that Mega has really underperformed in this month rally.

It has been interesting to watch how one day one stock goes up huge, then another day another one goes up huge.  Rotation within the sector I presume.

I am expecting Mega to be the next one to pop up big to at least 2.65, second resistance around 2.97.  Still another 20% profit available (it appears).

Next resistance from there is at about 3.65, February 28th close.  From here that would represent a 50% run up.

I guess we better hope that one day Mega will hit 3.65 again.

[jjj000]

Mega looks to have done pretty well to me... sitting at 50d ema now, and up nearly 50% since May 1 low of $1.75:

http://stockcharts.com/h-sc/ui?s=MGA.TO&p=D&yr=0&mn=6&dy=0&id=p84626591937

MGA also hasn't seen more than 5 days of buying pressure in quite a while... so I don't expect it to go much higher from here.  $2.65 could happen on an intraday spike... but I don't see it closing there unless we get another sector-wide rally on some acquisition news.

And news aside, I think it's more than likely it'll turn and head back down to 1.85, if not go head&shoulders all the way to 1.75 or below on the next low.