Saturday, November 04, 2006

Jim Dines and Uranium Picks

Jim Dines was on PBS last night, the Nightly Business Report, touting his favorite uranium stocks. Since Dines went public with four picks, its clearly ok to finally name names here. Better yet, I'll let Dines do it; here is a link to his appearance last night:

Jim Dines on Nightly Business Report, Nov. 3, 2006

The stocks Dines identified are:

Fronteer Development FRG
Laramide Resources LAM.TO
Mega Uranium MGA.TO
Pinetree Capital PNP.TO

Only FRG is traded on a domestic exchange, so that is the easiest selection to trade. The others are International Equities, require phone calls to brokers and are a bit more cumbersome to follow on a daily basis. Accordingly, so far I only own FRG, but I own a bunch of it and from much lower prices. But according to Dines (his latest newsletter hit last night) this bull market in Uranium and Uranium Stocks is still early and fortunes will be made in this sector in the years ahead.

A

20 comments:

curt504 said...

Thanks Allan for the heads up and info on some Uranium picks. I own FRG too.

Did Dines or your other sources give any preference to the Toronto listed plays?

You also tipped this AU play: SUMMIT RES FPO (SMM.AX) as a highly speculative play that would blow big based on some ifs. I believe from my DD that the main if is whether the AU gov passes a low allowing U mining again. I don't know the issues but it seems like an if that is hard to know "when".

Thanks, curt

Konrad said...

A -

CCJ has retraced due to their flooding issues. Dines is out. Do you think this could be a buying opportunity?

Konrad

Allan said...

curt: Dines is a firm believer in spreading your bets out to as many as ten companies in any one sector;

Konrad; Dines writes in his newsletter that CCJ could be headed for bankruptcy due to the flooding and their inability to deliver on uranium contracts.

A

curt504 said...

Thanks Allan on the buy a basket tip.

BTW do you or anyone have hold/dump thoughts on PTSC? I've been gritting my teeth waiting for the intel/amd shoe to drop. Also waiting for the management to roll out a business model that shows recuring revinue vs the one shot payments from licensees todate. I think PPS is languishing because no one can figure an earnings per share model.

??

tnx curt

Allan said...

From Briefing.com on FRG:

FRG Fronteer Development -- Momentum Profile (8.07 +0.39)

In April, we profiled FRG at $5.09. With it up 59% since then and trading at a new 52-wk high, we thought we'd revisit the story. Fronteer Development is a discovery stage mineral exploration company with properties in Turkey, Canada and Mexico. The co is advancing some large gold deposits. However, it's the co's 47.4% equity interest in Aurora Energy Resources (Toronto: AXU) that piques our interest. Aurora operates one of the largest undeveloped uranium deposits in Canada. Nuclear power has been out of favor and there has not been a new nuclear power plant commissioned in the US since Three Mile Island suffered the partial meltdown of a reactor core in 1979. However, that appears to be changing. As oil prices remain high, nuclear energy is increasingly being considered as an alternative. For example, NRG Energy (NRG) recently said that it would build two nuclear reactors in Texas as part of a $16 bln investment. China is planning to power its growth with the development of dozens of new nuclear power stations, according to an AP report. A recent Washington Post article quoted an energy analyst saying that 60 fresh nuclear reactors will be built in the US.... They key is to the FRG story is the Aurora unit. It has a current mkt cap of C$777.4 mln, which converts to about US$690 mln. FRG owns 47.4% of Aurora which computes to $328 mln. Since FRG's total mkt cap is $470 mln, its other projects are being valued at just $142 mln. As you can see by the chart, Aurora has been a hot stock in Canada which is helping spur the move in FRG... Note: We caution that the stock has risen 26% in the last 3 days, so waiting for a pullback makes sense but we wanted to provide some color on the recent move. (PROFX)

konrad said...

A- what happened to the Apollo basket: AGT, AOOR, APLL. I know AOOR was a spec play. Are you still following any of these?

Allan said...

konrad, I pretty much adhere to a 50% stop on these spec plays.....so what seemed like a good idea at the time hasn't worked out so well. I probably spend more time writing about these cute little penny stocks then is merited by the small place they take up in my portfolios, but they're more fun to write about then the Apple Computers and Qualcomms. And, if one of them hits, all the pain is soon forgotten. At least the i-buys seem to be coming to life.

A

Konrad said...

A - thanks for the answers today.

Anonymous said...

what do you think about URZ?

Allan said...

URZ - Don't know much about the company other then what is contained on their web site:

Uranerz Energy Corporation is the only pure uranium company listed on the American Stock Exchange (symbol URZ). Uranerz's corporate goal is to create shareholder wealth through the discovery or acquisition of quality uranium deposits, and developing those deposits into profitable producing mines using low cost mining methods such as in-situ and heap leach technologies.

http://www.uranerz.com/s/Home.asp

That said, on Friday it broke out on a three-day new high, continuing up today (Monday). The candlesticks are on a Buy signal. So technically, it's in BUY MODE and the fact that they are in the uranium sector is frosting on the cake, radioactive frosting, but frosting nonetheless.

A

Anonymous said...

So you are saying uranium stocks are "hot"?

Get it?

JK in DC

Anonymous said...

Allan, Are you still in SMM summit resources, australian market?

Their website lists a bunch of fund holders and recent good news and U mania looks to be a long term buy.

Discussion?

curt

Allan said...

Re: Summit Resources - curt, I dumped it a while back as I was having a hard time following it on a daily basis....if a stock can't be traded electronically, I am very relunctant get in or to stay with it, just a personal quirk I guess. In other words, my exit had nothing to do with the outlook for the stock.

A

Greg Reiman said...

Anyone know what company this is? How about the other company with the China mine?

Thanks

Greg

Would You Like to Own $30
of Gold for Less Than $4?

By Matt Badiali

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A Golden Future
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Last year, the company acquired 100% of its third deposit, which contains two ore bodies, one of which is being drilled right now.

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A Joint Venture with Huge Potential
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If you’ve been paying attention to the price of gold lately – and I’ll bet you have – you’ve noticed quite a run-up in price since 2001.

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Silver – up 206%
Platinum – up 185%
Copper – up 458%
Aluminum – up 122%
Oil – up 156%
Zinc – up 500%
Nickel – up 610%
Lead – up 250%
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1906 – 1922
1933 – 1953
1968 – 1982
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France’s largest bank’s equity brokerage, Cheuvreux says, “We could see the gold price spike up much further, possibly to $2,000 an ounce or even higher.”
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No matter which new plateau gold reaches, it seems clear that gold is headed in only one direction – up. But gold isn’t the only precious metal getting ready to take off (prices adjusted for inflation)...

Silver is still about 74% below its all-time high
Aluminum is still about 122% below its all-time high
Zinc is more than 162% below it’s all-time high
Copper is also 61% below its all-time high
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Sincerely,



Matt Badiali
Editor, The S&A Gold Report

P.S. For the past 7 months, I’ve been working on something very unique… my biggest project to date – researching a tiny firm constructing the largest gold mine in Asia.

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The first and only foreign company to receive gold mining permits in China – the tiny company that’s constructing this massive gold mine.


Why this company is about to become the largest gold producer in China.


The other big and potentially profitable gold mines it owns in China.


The exploration projects this company has lined up in China’s uncharted gold regions (remember, more than half the country has yet to be fully explored for gold!) Another big discovery could very well be on the way.
This report is yours as soon as you sign up for The S&A Gold Report.

Anonymous said...

The first one is northgate minerals.

Greg Reiman said...

Thanks anonymous

Greg

Anonymous said...

you are welcome greg
does anyone have a good play for coal to liquid stock? rentech or perhaps syntroleum?
It seems that their technology could really benefit our fuel hungry nation or better yet our planet.
AA

konrad said...

http://news.yahoo.com/s/nm/20061113/bs_nm/energy_hitachi_ge_nuclear_dc_4

Anonymous said...

Can anyone tell me whom Jim dines with? Those dinner conversations seem invaluable.

JK in DC

Anonymous said...

Who is the second chinese gold recommendation?