Value Microcaps Free-For-All

[micham2012]

re Uranium and CCJ:

After pausing for 2 or 3 weeks, the spot price for uranium jumped by $1.25 this week to $42.75/lb. It was a good day for uranium stocks today, and I am expecting a good week.

I sold 80% of CCJ a week before earnings, expecting a selloff on earnings news. Even though guidance was conservative, the selloff did not really materialize and I wound up buying the shares back at a slightly higher price. Looks like it is clear sailing now to $50/share. The world's largest publicly traded uranium company, CCJ is a terrific company that managed to make money when uranium was $7/lb., and will make an absolute ton of money in the coming years. FWIW, I think a chunk of it should be in everyone's portfolio for the long haul. In addition to uranium, CCJ has a not insubstantial exposure to the gold market, as it owns 53% of Centerra Gold (CG.TO). From Centerra's website:

"Centerra is a growth-oriented Canadian-based gold mining and exploration company engaged in the acquisition, exploration, development and operation of gold properties in Central Asia, the former Soviet Union and other emerging markets. Our objective is to build shareholder value and to establish Centerra as a senior gold producer by maximizing the potential of our current properties and leveraging our financial strength and experience to acquire new long-life, low-cost projects.

"Currently, we maintain interests in two producing mines:
* 100% equity interest in the Kumtor mine in the Kyrgyz Republic
* 95% equity interest in the Boroo mine in Mongolia

"We also have interests in promising exploration properties:
* 100% equity interest in the Gatsuurt property in Mongolia near Boroo
* 62% equity interest in the REN joint venture in Nevada, U.S.

"The two gold mines operated by the Company are expected to produce 790,000 ounces in 2005 at a total cash cost of about $229 per ounce. This ranks Centerra as a leading North American gold producer and the largest Western-based gold producer in Central Asia and the former Soviet Union. Centerra's shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is based in Toronto, Canada."

CCJ is up in the AH market, probably because news that it is purchasing 23 million shares of UNI.V:

http://biz.yahoo.com/ccn/060509/200605090326600001.html?.v=1

Steve