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Monday, October 30, 2006

Strathmore Minerals (STM.V, STHJF) jumps over 20%

The spot price of uranium jumped to $60.25 this week from $56 last week due to the Cigar Lake mine flood. And for some reason, it took a week for Strathmore Minerals (chart, combined links) to catch up to the rest of the uranium stocks, but today it did so with a vengence on the 2nd highest volume day ever as far as I can tell.

I've been reading StockInterview.com, which has a lot of stuff on uranium here. I highly recommend it, although keep in mind that they're generally focused on a specific perspective within the industry. You'll see the same people quoted all over the place. But those are top people in the industry. You can easily spend 10+ hours going through what they have on uranium. The key things I take from what I've read there are 1) the details of the Cigar Lake mine make it clear that a flooding accident (there were at least two) was not surprising, 2) there's a strong perception that the uranium buyers were/are largely in denial about the changing market conditions and the supply risks in the uranium market, 3) things are complicated.

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