U3O8 Uranium.

[limegreen]

quote: What a massive gap up in late October. Was this caused by share consolidation or price movement?

I presume you're referring to WMR.AU. A conditional takeover offer was lodged by Xstrata of Switzerland at $6.35. It had traded at a healthy premium to this since then, suggesting there is anticipation of either Xstrata raising their bid, or a bidding war involving another party. I can't predict where the price is going to go from here (it could go much higher, $9-$12 have been suggested should another bidder eventuate; but settling back to $5/$6 should nothing happen is possible as well). Personally, I'd be somewhat sceptical about buying into another stock for exposure to aluminium when WMR have so much uranium, which they're digging up to extract copper anyway. Obviously I hold WMR, so you should be able to work out which colour my glasses are tinted.

[Morch]

quote:Originally posted by limegreen

quote: What a massive gap up in late October. Was this caused by share consolidation or price movement?

I presume you're referring to WMR.AU. A conditional takeover offer was lodged by Xstrata of Switzerland at $6.35. It had traded at a healthy premium to this since then, suggesting there is anticipation of either Xstrata raising their bid, or a bidding war involving another party. I can't predict where the price is going to go from here (it could go much higher, $9-$12 have been suggested should another bidder eventuate; but settling back to $5/$6 should nothing happen is possible as well). Personally, I'd be somewhat sceptical about buying into another stock for exposure to aluminium when WMR have so much uranium, which they're digging up to extract copper anyway. Obviously I hold WMR, so you should be able to work out which colour my glasses are tinted.

Yes it as WMR, and many thanks for your post. I note they say they are the worlds largest produce of Uranium? and unlike smm are in production so thats very positive. looking at the chart it seems that takeover is quite protracted but given the demand for Uranium your upside suggestion may be the more likley scenario.

Morch

[limegreen]

Rumour (ie, sharebroker, newspapers) suggest that WMR has not been that well managed in the past, making it a fairly attractive takeover target or investment, as they clearly have the mineral resources, so with enhanced management (which is now, allegedly, happening), there is some upside. Or at least that was my relatively uneducated reason for investment.

[srotherh]

ERA:ASX Energy resources of Australia
Owned approx 60% by rio Tinto
Presently mines uranium in NT
No Debt
Check it out

[stolwyk]

There is some movement in share prices this morning:
PDN: 68 (+ 12) Got some yesterday.

SMM 19.5 (+2.5), I hold

CVV(CanAlaska--Canadian) 43 (+3), I hold

As to Uranium, no price increase was recorded.

As soon as I get some time I want to get back to studying some Uranium companies and report here.

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.

[Packersoldkidney]

Gerry.

There's an article on Hotcopper you can copy over to here.

Just a heads up.

Packers.

[stolwyk]

Thanks.

I have read it but have picked an article for SMM-see thread.

SMM: 21 cents

Gerry

[Packersoldkidney]

Sounds like you don't trade these companies, Gerry, but are a buy and hold sort of investor. Is this correct?

[stolwyk]

I do try to hold if at all possible. But many companies are not condusive to holding due to promises not kept, bad governance and overall risk.

A company I trust is CSM

I want to do some work in my garden. Can I leave you to it?

Gerry

[Packersoldkidney]

Best not leave me to anything, Gerry. I'm a diagnosed pyromaniac, and prone to burn things if left alone with a box of matches. Uranium and pyromania don't really go together, if you ask me - an explosive combination. If you leave, this thread could get hot, and we could all be only left with half-lives.

Enjoy your tomatoes. Got some Apollos, Gross Lizzys, Mighty Reds, Rouge De Mars and Romas myself. Or maybe you have flowers. One should always take time to smell the flowers, so it is said. Have to say it is a practice I dislike, due to the fact sniffing petals gives me hayfever.