Well then there may be another Reason PCFG is doing a spin off of that mine. Here is what I got this morning in my email. While that mine is not the subject of this email I find it very interesting and something to think about when you get dividend shares on this new stock.
Deal Makes Junior Miner a Potential Takeover Target
Thursday, April 26, 2012
In Today's Issue:
Deal Makes Junior Miner a Potential Takeover Target…
Demand of Uranium Set to Double
*****
Deal Makes Junior Miner a Potential Takeover Target
~ by Sasha Cekerevac, BA
While many investors look to junior mining stocks for capital appreciation, I would suggest looking at uranium investing as part of a well-diversified portfolio. There are several reasons for this. While uranium investing took a hit following the tragic events of the Japanese nuclear disaster, the long-term fundamentals are extremely strong, as is the potential for explosive potential in junior mining stocks.
As we’ve seen other junior mining stocks oscillate last year in a highly volatile environment, uranium investing, at least in the commodity itself, has remained fairly stable. The price of uranium is approximately $51.00 right now and it has remained in this range following the earthquake and tsunami in Japan. Prior to that, uranium futures traded between $65.00 and $70.00. Analyst forecasts for the future show a highly probable case for uranium prices to climb to $65.00 later this year; some industry insiders believe it could climb to $80.00 for uranium within two years.
Penny stocks offer the advantage that a larger firm might be interested in specific properties and then buy the whole firm due to the low price. Recent events in certain junior mining stocks have alerted me to the possibility of future activity in the uranium sector.
