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.

26 January 2011

Merv's Daily Commentary 26 Jan 2011

After The Close, 26 Jan 2011

Merv’s Daily Uranium Index
Market Data

Open: 250.52
High: 256.61
Low: 247.38
Close: 255.04
Volume: 6816

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

A $2.00 advance in the price of uranium this week may be starting to have an effect on the stock prices but the volume of activity is pretty pathetic and suggests that speculators are still holding back and not really rushing in on the buy side. Prices move up because the demand overpowers supply of stock. However, you could get this effect two different ways. You could have very heavy demand with not enough supply to handle such demand. You could have low demand but still lower supply with holders of stock just sitting on the sidelines waiting to see what’s going on before they add to the supply and those who might be buyers also sitting on the sideline waiting for a better sign that it is time to buy. Hopefully, the days ahead will see a pick-up in daily volume action.

The Merv’s Daily Uranium Index closed higher by 6.20 points or 2.49%. There were 40 winners, 6 losers and 4 stocks fast asleep. Cameco gained 2.5%, Denison gained 5.2%, Extract gained 1.0%, Paladin gained 1.2% and Uranium One was fast asleep. The best daily winner was Uranium Resources with a gain of 14.8%. It is interesting that with 40 winners there was only this one stock that closed in the double digit gain area. The worst loser of the few losers was NWT Uranium with a loss of 7.1%. Market Vectors Nuclear Energy ETF gained 1.3% and Global X Uranium ETF gained 2.6%.

The intermediate term continues to be positive with a rating of BULLISH.

The short term is in an area where the indicators and ratings can bounce back and forth on a day’s activity. Today, the Index closed above the moving average line and the line turned upwards. The momentum indicator moved back into its positive zone and above its trigger line although the trigger remains in a downward slope. Still, the short term rating has reversed back to the BULLISH side.

As for the immediate direction of least resistance, I’m going with the prevailing trend even though the volume is a hindrance. The immediate direction is to the up side.

To a commenter from a couple of days back. I did not have White Canyon Uranium in my directory but it is included now. Thanks for the info. It seems I hit the wrong key and seemed to have deleted your comment. This is why the response is here.

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