Value Microcaps Junior Miners

[Bobwins]

STM.v/sthjf.pk -.04 to C$.48

Keep an eye on Strathmore. This is a quality uranium miner. They have applications in for two mines. Their flagship Roca Honda property in New Mexico and another in Wyoming. Strathmore has collected an impressive array of uranium properties when U308 dropped way down to $6/lb. It's higher than that at $40.75 but well below the peak of $126 from several years ago.

http://finance.yahoo.com/news/Strathmore-Minerals-Corp-2009-ccn-3042648713.html?x=0&.v=1

Strathmore has a big Japanese partner in Roca Honda because the Japanese realize there could easily be a shortage of U308 in a couple of years. The Russians have been supplying the market with converted bomb material at a very cheap price. They say they are going to quit in 2013, when the original agreement ends. The structural deficit of U308 will become apparent then but utilities will have to move in 2011-12 to secure long term supplies before the Russians stop selling into the international markets. They say they want to retain the U308 for their own reactor fleet, which they are increasing. Worldwide there are something over 300 reactors in the planning stage. Each one takes at least a million pounds on startup.

Strathmore has fallen sharply from a 2010 peak of C$.77 on 5/3/10 to C$.48 today. I think this is a combination of the recent market peak and fall PLUS PP financing shares that came off hold on 5/21/10. The financing was done at C$.55 and came with 1/2 warrant to buy stock at .75, good for 2 years. 15million units were sold in 1/10.

STM.v has dropped thru all recent support and thru the 50 and 200 days averages with minimal pauses. Both averages are in the mid .60's so it ain't close. But there is support from an August 09 low at around .45.

STM.v recently closed on the sale of one of it's minor properties. They got 17.5million cash and shares in the acquirer. They have C$29million working capital and less than 90 million shares outstanding. Slighty over 100 million FD so something over .25 of liquid assets vs a .48 stock price.

http://finance.yahoo.com/news/Strathmore-Completes-Pine-ccn-2231836098.html?x=0&.v=1


U308 might take awhile to head up decisively so there is risk because Roca Honda is still several years from production. But STM is real and one of the few companies strong enough to actually get into production. I think the PP has caused this selloff and absent a big overall market selloff, should be approaching a bottom here. Could be a decent short term opportunity. Again, it hasn't turned up yet so there is still high risk of a continued fall but the good cash position and progressing projects have to be worth something. Watch for a turn! Bobwins