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Uranium Stocks: Starting to Glow Again

posted Tuesday, 5 May 2009

After being obliterated by the crash of 2008 and the plummeting price of oil, uranium and uranium stocks may be on the rise again. One of my favorite producers, Denison Mines (DNN), with operations in the United States and Canada, saw its shares drop well below one dollar when it was around 9 when I first bought some a couple years ago. Painful as that was, the long-term demand for uranium is not going away and Denison has a future worth investing in, so I bought more at 0.78. Had also bought some at 1.1 and 1.3. Now it's back up above 2 and looking healthy. I recommend buying in this range with a target of 3 and more likely 4 by the end of this year.

I had some Consolidated Abaddon which also got clobbered, but I think this current penny stock is on the rise again. Higher risk, so beware - but they own some great properties and could be a buyout target from larger companies as uranium heats up. 

Cameco (CCJ) is "safer" but I also think less attractive than DNN right now. Tough call, though. 

Nuclear energy makes a lot of sense to me and to most of the world. Too bad we deny ourselves of its green benefits here!

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