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.

22 May 2011

Merv's Weekly Uranium Commentary 22 May 2011

Merv’s Weekly Uranium Review

for week ending 20 May 2011

Merv’s Daily Uranium Index

Market Data for Friday 20 May 2011

Open: 179.34

High: 181.58

Low: 176.23

Close: 179.18

Volume: 3192

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 Indices were posted earlier and should be viewed during this commentary.

It’s a long weekend here in Canada so this posting may be a little late. Anyway, nothing much is still happening with uranium stocks except as expected the decline in the Daily Index seems to have come to an end at the previous low. The rebound has not been anything to write home about so we will have to watch the Index for the next few days and see how it reacts. So far it has reacted but very unenthusiastically. Other than halting at its previous low there is nothing much to write about from a chart standpoint. So, we go to the indicators. But first our usual routine.

The Merv’s Daily Uranium Index closed on Friday with a very slight loss of 0.13 points or 0.07%. There were 17 winners, 25 losers and 8 stocks just bumming around. Cameco lost 0.6%, Denison lost 1.0%, Extract was just bumming around, so was Paladin and Uranium One lost 1.1%. The best winner of the day was Terra Ventures with a gain of 12.5% while the loser of the day was Kivalliq Energy with a loss of 8.3%. Market Vectors Uranium + Nuclear Energy ETF lost 0.7% while Global X Uranium ETF lost 0.5%.

For the full week the Merv’s Weekly Uranium Index lost 87.91 points or 1.43% while the Daily Index gained 0.33%. There were 18 weekly winners, 28 losers and 4 stocks bumming around. Cameco gained 3.6%, Denison lost 4.3%, Extract lost 2.5%, Paladin just bummed around for the full week and Uranium One lost 2.9%. The best weekly winner was Terra Ventures with a gain of 27.1% while the worst weekly loser was Xemplar Energy with a loss of 15.0%. Market Vectors Uranium + Nuclear Energy ETF gained 0.4% on the week while Global X Uranium ETF lost 0.8%.

Both the long term and intermediate term have some way to go before their indicators firm up and the ratings improve. Both are rated as BEARISH. It’s in the short term that things are starting to happen.

On the short term the indicators are still negative but oh so close to turning around. For now the rating remains BEARISH but that could change in one day of trading.

As far as the immediate direction of least resistance is concerned, well the Daily Index is above its very short term moving average line and the line is now sloping upwards. The aggressive Stochastic Oscillator has been moving upwards quite aggressively and has moved into its positive zone above its positive trigger line. Although Friday was a very minor down day it does look like the direction of least resistance is to the up side. Give it another day or so to confirm.

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