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Discussion Starter #1
Anyone investing in uranium? I probably missed the boat on this already but there still might be some upside.

I was thinking of Uranium One UUU.TO or Cameco CCO.TO.

Cameco is a larger company with a dividend. Perhaps I can buy it on a dip.

What does everyone else think?
 

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I,ve been in and out of UUU five times now and made money every time , it has been a traders dream , very volatile.

At some point , it will make for a good long term hold , as will most uranium producers , just not sure when it will happen.

UUU is currently in the early stages of a takeover deal where the Russians will take control of UUU , if the minority shareholders vote yes for the deal , if that happens , UUU will pay all minority shareholders a "special dividend" of $1.06 , a substantial premium when you consider their price of $2.88 or so.

A lot of people think that Russian ownership will not be good for UUU so it's hard to say which way the vote will go.

If you want in on the dividend , buy now , but if the vote goes no , there may be a substantial drop in share price , even if it goes yes , it may still drop by the dividend amount after the ex-div date , so it may be wise to collect the dividend and sell.

I currently hold Paladin energy (PDN) , which just signed a Memorandum of Understanding with the Chinese for long term uranium sales , I think they have the best upside potential right now if your looking to get into Uranium.

There are also funds that hold the actual U308 , their sources are finite tho , I would imagine , so long term , I would be wary of them.

I think there will be a huge upside in the uranium mining industry as new reactors come on line , they like to have long term contracts in place beforehand , but until that happens and the spot price improves , they are great trading vehicles.

Long term you will do well also , just how long you will have to wait tho , is anyones guess , Cameco would be a good bet for longer term in my opinion , as Canada produces a large portion of the worlds Uranium supply and I see the Americans wanting that soon rather than buying from the Russians , but that's just my opinion.
 

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Target price for UUU is over $4 , currently the yes vote is about 90% sure , so the $1.06 dividend alone is worth buying it right now.

I just bought more yesterday , my plan is to get out after the dividend , collect the dividend and hope the share price remains at around $4 long enough to get a decent gain as well.

I'll let you know how it works out.

I hold Paladin energy as well , their agreement with China will be good for their share price , they will be the next big takeover target in the uranium industry in my opinion.
 

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Discussion Starter #7
How do you get out of UUU in time before the stock drops? It seems to me that there are probably trading machines that will automatically sell off UUU. Is there a after market/pre market for this? Seems like that always sets the price and doesn't give you a chance after the ex-date.
 

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Anyone investing in uranium? I probably missed the boat on this already but there still might be some upside.

I was thinking of Uranium One UUU.TO or Cameco CCO.TO.

Cameco is a larger company with a dividend. Perhaps I can buy it on a dip.

What does everyone else think?
If you decide on UUU.TO then you may choose to buy the debenture on UUU, which trades under the ticker UUU.DB and UUU.DB.A. ;) less volatitle on the downside. Having said that it is conceivable they will be taken out by the russian at PAR.
 

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Less volatile for downside , but less upside potential as well.

They are unsecured and would have to be converted by the ex-div date to collect the dividend , depending on the conversion rate , it could reduce the profit.

I plan on selling as soon as the dividend is issued and ex-div date is announced , there are alway those who feel that this is a good move for UUU and will hang on for the longer term and bigger gains , only to sell a little later when they see the share price dropping fast , that usually keeps the price up temporarily at least.

Happens all the time in biotech stocks , which I have been trading frequently lately.

But even without any gain in share price , the dividend looks to be close to 30%.

It is still risky tho , if the vote goes no , I will have to hold this until share price recovers and at least break even.

It's a risk I'm willing to take at this point.
 

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I would expect the bull run in uranium to continue for some time yet most uranium companies have done well the last month or more.

I sold UUU and bought PDN instead , I was a little about the Russian takeover of UUU , but apparently others have not been , it has done very well , and if they ever announce the $1.06 dividend , that will be a real bonus , although I would expect sp to drop by close to the div amount after the ex-div date.

UEC has done extremely well also.

I'm thinking of buying some of the smaller players like FIS , DIT or others , I think they will have some tremendous upside and make great takeover targets.

FIS has some major backing from Korea.
 

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Discussion Starter #12
I would expect the bull run in uranium to continue for some time yet most uranium companies have done well the last month or more.

I sold UUU and bought PDN instead , I was a little about the Russian takeover of UUU , but apparently others have not been , it has done very well , and if they ever announce the $1.06 dividend , that will be a real bonus , although I would expect sp to drop by close to the div amount after the ex-div date.

UEC has done extremely well also.

I'm thinking of buying some of the smaller players like FIS , DIT or others , I think they will have some tremendous upside and make great takeover targets.

FIS has some major backing from Korea.
For some of players that are of the same size as UUU, is there any point in buying those as well or just sticking to what you have since the price move is mainly due to the underlying Uranium price?
 

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I think all uranium producers will continue in the uptrend for a while yet , there is more room in some of the juniors tho for appreciation , just due to lower sp.

I would keep what I have and possibly buy some of the juniors.

The price move by most uranium companies lately is due to the rise in U308 , the upside in UUU is due to spot price as well as the takeover hype and the expectation of a $1.06 special dividend.

A word of caution on UUU , in my opinion , the $1.06 special dividend is already mostly priced in , so sp should drop by close to that amount after ex-div date , if history is any indicator.

The only other worry that I would have owning UUU , is that if for any reason the deal doesn't go thru , (and their is opposition by the republicans in the US) , and the dividend is not announced , sp will be back around $2.50 in a hurry , that's about their current NAV without the buyout.

That's why I dumped UUU (at a 20% gain) , and bought PDN , other than the risk they are pretty equal peers , I see less risk and more upside to PDN.

I was looking at UEC , another good one , but it's had too much upside for me to buy in now , too expensive.
 

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Discussion Starter #14
What I have trouble understanding is how do I know that this dividend is baked in?

I bought this stock a while ago and bought it a couple more times after the shareholders had agreed to the deal. If I recall correctly, the stock have very little movement on the day the deal was approved. Since the voting result was not known prior to it happening, I don't think the full price of the dividend could have been baked into the sp at that point. Subsequently, the sp actually went down a bit which is when I added more shares.

They are supposed to announce when the dividend will be paid out early November. If the price of the stock goes up after the announcement, then my theory might be correct. I was hoping to wait till then to sell.

I'm at 46% gain right now so I'd consider taking some profits now too.


For the juniors, I looked at the run ups as well today and they seemed pretty steep so I might wait and see first. Thanks for the tips!
 

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What I have trouble understanding is how do I know that this dividend is baked in?

I bought this stock a while ago and bought it a couple more times after the shareholders had agreed to the deal. If I recall correctly, the stock have very little movement on the day the deal was approved. Since the voting result was not known prior to it happening, I don't think the full price of the dividend could have been baked into the sp at that point. Subsequently, the sp actually went down a bit which is when I added more shares.

They are supposed to announce when the dividend will be paid out early November. If the price of the stock goes up after the announcement, then my theory might be correct. I was hoping to wait till then to sell.

I'm at 46% gain right now so I'd consider taking some profits now too.


For the juniors, I looked at the run ups as well today and they seemed pretty steep so I might wait and see first. Thanks for the tips!

Consider taking some off the table now. I bought UUU at $0.70 and sold 1/5th to get my initial investment back in less than 1 year.

I love playing with house money - you can't lose.

Good Luck
 

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Subsequently, the sp actually went down a bit which is when I added more shares.
That was a good move.

The reason the price went down in September was due to a major selloff by insiders , which in my opinion is another reason to be wary of UUU.

If they were so sure the deal would go thru and a dividend paid , why would all the insiders sell and not hold for the div?

You could be right and hold and collect div , but if anything goes wrong , UUU could be back to $2.50 before you even get your shares to market , this is just a possibility.

But hey , like I always say , more risk equals more reward , good luck , I hope you do well on it.
 

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Consider taking some off the table now. I bought UUU at $0.70 and sold 1/5th to get my initial investment back in less than 1 year.Good Luck
I don't see how you could have done that , the 52 week low was $1.97.

UUU hasn't been anywhere near .70 cents since the bottom in 2008.:confused:
 

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Discussion Starter #18
That was a good move.

If they were so sure the deal would go thru and a dividend paid , why would all the insiders sell and not hold for the div?

QUOTE]

Thanks. I sold a 1/4 of my shares for $4.79 today. Happy to take some profits and see how the cookies crumble.
 

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Congratulations for all those who presevered.

i have a 82% return on UUU YTD - bought it @ 2.75 and been holding on for quite a while...good to see one's faith repaid. I'm still holding on...but probably opportune time to lock in some gains, it jumped another 7% today.
 

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I don't see how you could have done that , the 52 week low was $1.97.

UUU hasn't been anywhere near .70 cents since the bottom in 2008.:confused:

Sorry, my purchase date was 2008-10-27 and I took most of my initial investment back within 1 year of purchase date.

I try to buy most of my straw hats in the winter.

My thoughts on UUU currently center around where it will be in the next 3-5 years - can it get back to circa $15 again?

Uranium is an established and growing energy source and ARMZ/UUU will be the 5th largest U308 producer in the world.
 
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