Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Email - RX for UEX

Is there any fundamental reason to stay in UEX
Is there more drilling planned in that basin in the near future?

UEX showed great promise back in January and the Big Picture Speculator was all over the breakout. Fundamentally nothing has changed. UEX Corp. still has a great inventory of Athabasca Basin uranium projects with results pending. There is no recent news that explains the recent high volume selloff. UEX insiders have been busy exercising their stock options.

A "promising" Athabasca Basin project is typically valued in the $10-$100 million range. I have a high opinion of UEX's projects as they didn't have much competition until a year ago.

Currently Denison Mines and UEX Corp. have equivalent market caps. Shrewd resource investors look for long life resources in politically stable countries. UEX is currently weak on the resources side of the equation.

Technically UEX crossed a short term uptrend line when it dropped below $3. It is very close to dropping below the base of a two year trend channel. I keep close tabs on UEX but am waiting for some good news and a better looking chart. I'm willing to stand aside and miss the for my own personal peace of mind. There was a sharp correction in energy companies last week (oil/coal/uranium). My gut feel tells me we can ramp higher into a massive blow off top in the energy sector but the UEX chart has sent a couple of warning signals that need to be respected. I'd look to exit on a close below $2.20. A fast 2-3 day recovery to $3.00 would brighten the technical outlook considerably.

UEX Corp.