Uranium Companies

There are very few pure uranium companies. Most companies, especially the small exploration type, are active in more than the uranium industry. This blog makes no attempt to guage the percentage of a companies activity that are related to the finding, mining or processing of uraniun. They all do, however, have some uranium activities (to the best of our review).

Merv's Uranium Indices

I have developed two Uranium Indices. They each have the same component stocks but are calculated using different methodologies. My weekly Index is based upon the average weekly performance of the component stocks. My daily Index is based upon the daily average of the component stocks open, high, low and close prices along with the daily average volume of all component stocks.

Click on the chart or table to enlage the view.

17 December 2009

Merv's Daily Commentary 17 Dec 2009

After The Close, 17 Dec 2009

Merv’s Daily Uranium Index
Market Data

Open: 178.89
High: 180.13
Low: 174.12
Close: 175.86
Volume: 3404

Note that the volume is an average volume of round lot sales for the 50 component stocks. For total volume, multiply by 5000.

I mentioned some time ago that as long as we remain in the “box” and keep going up and down with the Index the indicators will continue to fluctuate and the ratings will continue to whip-saw. This is happening once more with the Daily Index making another negative day. The stocks just don’t seem to be getting any strength behind them and seem just as happy to relax and go nowhere. It’s frustrating but that’s the way it is. As one sharp analyst many, many years ago said, “the markets do what they have to do to confuse most investors most of the time”. It looks like the next support to watch is that up trend line shown on the chart. I can’t see anything else of note but will give it a good look-see during the week-end.

The Merv’s Daily Uranium Index closed lower by 3.87 points or 2.15%. There were only 7 winners today, 33 losers and 10 going nowhere. As for those 5 largest stocks by market value, Cameco lost 1.4%, First Uranium lost 4.0%, Paladin gained 0.8%, Uranium One lost 2.9% and Uranium Participation lost 2.8%. The best performer out of those 7 winners was Xemplar Energy with a gain of 6.7% while the loser of the day was Powertech Uranium with a loss of 7.7%. Market Vectors Nuclear Energy ETF lost 2.1%.

The daily Index once more crossed its intermediate term moving average line to the down side and the line in turn took a very small dip downward. The momentum indicator is moving lower fast but is still just slightly in its positive zone. It is, however, below its negative sloping trigger line. The volume indicator is moving lower with the Index activity but is still slightly above its positive trigger line. Putting all this together I come to the unfortunate down sizeing of the rating back to the BEARISH level.

As for the short term, everything here is negative. The Index is below its negative moving average line and the momentum indicator is in its negative zone below its negative sloping trigger line. The daily volume action continues low as expected during a negative Index trend. The short term rating is also BEARISH.

As for the immediate direction of least resistance, that should be the down side as the Stochastic Oscillator is speeding downward and has just peaked its head into the negative zone. However, I will stick with the lateral direction for another day as the Index may be very close to support, which hopefully will halt its downside moves.

I have changed a few of the component stocks today. One of the new stocks is a Fund (as opposed to an Exchange Traded Fund). This Fund is a managed portfolio of Uranium stocks of the kind you see in throughout my component list. It is the only fund that I have found `that invests purely in uranium (mining and exploration) stocks as opposed to “nuclear” stocks. The stock is Global Uranium Fund Inc. and is traded on the TSX-V exchange with the symbol GUR. You will find it in the week-end table this coming week-end.

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