In a recent Penny Stock Detectives article, editor Sasha Cekerevac points out that the long-term investor interested in uranium can take advantage of the stability in uranium prices with the knowledge that demand is set to increase over the next decade. With demand increasing, more people will become interested in uranium investing and the junior mining stocks involved. Cekerevac believes that one interesting uranium junior mining stock that is increasing production is Uranium One.
"With prices of uranium estimated to increase past $65.00 per pound by next year, and some analysts estimate $80.00 within the next several years, a person with a long-term horizon interested in uranium investing might want to look at junior mining stocks that have a solid fundamental situation and can ride out the current environment," notes Cekerevac.
According to Penny Stock Detectives, Uranium One is Canada's number two listed producer of uranium and has properties in Kazakhstan, Australia, Tanzania, and the U.S.
Cekerevac reports that Uranium One issued a statement that it expects to produce 11.6 million pounds of uranium in 2012 and 12.5 million pounds next year. Overall revenue for the first quarter of this year fell slightly, as the price that the company was able to achieve for uranium averaged $53.00, compared to the previous price of $61.00. The good news is that the cash cost for extraction was only $14.00 per pound, a very comfortable operating margin, believes Cekerevac.
If uranium prices move back up to the mid-$60.00 range, Cekerevac believes this would be extremely bullish for Uranium One, as the higher sales price would be a direct boost to the company's net earnings. Production this quarter was 18% higher than last year.
According to Cekerevac, the company trades at a reasonable forward price-to-earnings ratio of 11.17, a price/earnings to growth ratio of 0.38, and a price to book ratio of just over one. With an operating margin of 39.61%, and the profit margin of 16.67%, Cekerevac believes the company has solid fundamentals.
Uranium investing offers long-term investors the opportunity to get in while the prices remain low, in Cekerevac's opinion. Junior mining stocks are inherently volatile, but the long-term fundamentals for uranium investing are certainly positive over the next decade.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
To see the full article and to learn more about Penny Stock Detectives, visit http://www.pennystockdetectives.com.
The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at http://www.pennystockdetectives.com.
Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss This... which highlights a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS.
Read the full story at http://www.prweb.com/releases/2012/5/prweb9521764.htm
PRWeb.com
|