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.

30 May 2010

Merv's Daily Commentary 30 May 2010

Merv’s Weekly Uranium Review
for week ending 28 May 2010

Merv’s Daily Uranium Index
Market Data for Friday 28 May 2010

Open: 155.76
Hugh: 157.33
Low: 151.67
Close: 154.30
Volume: 2748

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

Note that additional charts of the Daily and Weekly Indices were posted earlier and should be viewed during this commentary.

With the American long week-end almost here I guess many speculators left early as the volume of trading in the uranium stocks was pretty low on Friday. Other than the low volume there was nothing in the day’s activity of great concern or extra interest, same old, same old.

The Merv’s Daily Uranium Index closed lower on Friday by 0.98 points or 0.63%. There were 20 winners, 17 losers and a whole bunch of stocks already on holiday (13 of them). Cameco lost 0.4%, Extract went on holiday early, Fronteer lost 2.5%, Paladin lost 2.9% and Uranium One lost 0.5%. The best winner of the day was RPT Resources with a gain of 12.8% while the worst loser was Tournigan Energy with a loss of 11.1%. Market Vectors Nuclear Energy ETF lost 0.2%.

For the full week the Merv’s Weekly Uranium Index closed higher by 105.09 points or 2.41%. There were 28 winners, 16 losers and 6 on holidays. Cameco gained 0.9% on the week, Extract lost 0.6%, Fronteer gained 4.4%, Paladin gained 1.5% and Uranium One gained 2.8%. The best weekly winner was USEC with a gain of 24.5% while the worst loser was Wealth Minerals with a loss of 10.7%.

There is no good news from the ratings front. On the long term both the Daily and Weekly Indices continue to trend in sync. Both continue to move below their respective negative sloping moving average lines. Their momentum indicators continue inside their negative zones while the volume indicator continues to move sideways below its negative trigger line. Both Indices can be rated as BEARISH, long term wise.

On the intermediate term nothing has changed either. The Daily Index remains some distance below its negative sloping moving average line. The momentum indicator has moved above its trigger line but the trigger remains slightly negative. Both remain inside their negative zone. As for the volume indicator, it remains below its negative trigger line. On the intermediate term the rating remains BEARISH.

On the short term the Daily Index remains above its still negative moving average line. The momentum indicator had given us a positive divergence signal and remains above its positive trigger line although still in the negative zone. The daily volume activity has been quite mild possibly due to the long week-end. The short term rating remains at + NEUTRAL. The very short term moving average line remains below the short term line for a confirmation that the short term bull has not quite arrived yet.

The Stochastic Oscillator is just about to enter its overbought zone so we might expect some downside action in the next few days. I will stick with my lateral guess as the immediate direction for the Index.

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