In depth analysis for Uranium One TSE:UUU

What’s new with the stock geeks out there?

Before you consider purchasing this stock please remember it is a speculative stock

Speculative stock is Uranium One (TSE:UUU).

This is a Canadian stock that deals with the mining and production of Uranium. Exploration properties for Uranium One are in Kazakhstan, the United States, Australia and Canada. The company also owns stakes in other exploration developments.

What is Uranium? Uranium is a very dense, radioactive metallic element, naturally occurring in most rocks, soil, and even in the ocean. Uranium is mined for many different purposes and has been used to produce energy for more than forty years. Eg. Nuclear Power Plants.

TSE:UUU is currently trading at $2.64 CAD/Share and I think it goes higher from this point. Uranium’s spot price is at $42.35/lbs which has been on a serious down trend for about two years. Sudden demand looks like it will spark, probably bringing prices up to $50 per pound by Q3 2010. I see UUU being undervalued at these levels as they produce 2.9% of the worlds Uranium with that number expected to grow. 

If this isnt a sign of demand sparking I dont know what is:

Majority of these future plants are being placed in China, Russia and India

which all have great growth prospects.

Growth production forcasts look promising:

With higher demand and higher prices, doubling production from 2009 will result in

a great profit turn around for the company.

Final word:

Uranium One is an undervalued company that was hit by the financial crisis in 2007. This stock may be one of the most talked about as a comeback story.

Mr Stock Picks short term Price target for TSE:UUU $3.05

I hope everyone is enjoying the rally, especially if you have bought BAC with buy signal at $14.30  the stock is trading nearly $4 higher since than.

These are brief explanations if you have any questions or would like additional information please contact me directly through the blog. Leave your email and I will try to respond quickly. These are just opinions of mine and you should not use a specific opinion to make an investment. Investors should be aware of the risk involved in making investments.

Enjoy your weekend,

Mr. Stock Pick