Value Microcaps Free-For-All

[micham2012]

Len re Uranium:

I have no quarrel with the idea that some of the Canadian uranium juniors are horribly overvalued, or that the overall sector was (still is?) due for a correction.

But I do think that the supply/demand imbalance in uranium is very real, that the spot price will continue to rise inexorably, and that uranium plays with existing and/or near term production (even a few of the Canadian juniors!) are headed much higher. It is worth noting that the spot price for uranium has not gone down during a single week this year (or last year, as far as I know), notwithstanding the sharp corrections in the other metals:

http://www.uxc.com/review/uxc_Prices.aspx

While I don't track the long term price from week to week, I know that its rise in recent times has been equally dramatic. Again, all this is because of the fundamentals, and frankly, where the price of uranium is concerned, my view is we aint seen nuthin yet.

FWIW, I initiated a position this week in SXR Uranium One, Inc., SXR.TO (SXRFF), and continue to hold substantial (for me) positions in CCJ, DEN.TO (DNMIF), UEX.TO (UEXCF), and U.WT.TO, and small (even smaller after this week!) positions in UNI.V (UNOFF), ALZ.V (ALZTF) and SAN.V(SANRF). I have been looking closely at URRE, but have not yet pulled the trigger.

But as usual, your timing has been extraordinary here. While a 16% correction after this year's gains may not qualify as a collapse, it has been a hit to my portfolio for sure.

Steve