Monday, August 12, 2013

Uranium's Hot Summer Love; Uranerz Energy: One DDW To Go -

How Is U3O8 Now?

Our July 19 newsletter—Gold: Fever Or Cure? Uranium: Japan Readies Reactor Restarts—was meant as a reminder why portfolio investors always need a strategic position in metals. Topics include: Is Gold Now Just Another Four-Letter Word?, Gold's Glitter Gauges, Finding Gold's Bottom, Will Uranium Prices Play Catch-Up To Oil?, Uranium's Deep Value Proposition, Uranium's Fog Is Clearing Fast—Japan's Reactor Restarts, and Uranium Plays—Uranerz Energy Corp..

We started that article as gold was testing its key $1,224/oz. technical and fundamental levels—the 61.8% Fibonacci support level that is also close to the all-in breakeven point for many gold miners. As the article was published, gold had already bounced to $1,295/oz.—since then it has been hovering around April's $1,321.50/oz. lows. From this now apparent pivot point—as several gold majors release their quarterlies with dividend cuts and huge write-downs—it's probably still too soon to call a bottom until the market digests all of this and may attempt a pullback to test the low $1,200's again.

This article focuses on uranium miners, however gold sentiment needs to be watched as it tends to be the health barometer for the entire metals and mining industry—from precious to base metals, to even rare earths. The point being, a tough financing environment for gold means the same for any type of mining exploration and development—liquidity drives activity, news flow and investor interest. For uranium, you also need to keep an eye on oil price trends—bellwether of the energy sector. Curiously, the U3O8 spot price remains weak at $35.75/lb. as oil remains strong at over $100/bbl..

From an investment perspective, we became attracted to and remain focused on uranium as the only commercially available fuel source for nuclear reactors. More nuclear energy simply means more uranium demand—with the number of reactors worldwide set to more than double by 2030.

Lacking a liquid futures market, the only real way to play the U3O8 bounce to the long-term growth of nuclear power is uranium mining stocks. In short, uranium miners represent levered exposure to a growing market with a monopoly, with tighter supplies as the Russia-U.S. Megatons to Megawatts HEU program ends this year and as more mines close due to low uranium prices, with Japan's reactors restarting soon, and with uranium miners' shares still beaten-down from Fukushima's aftermath. From a timing perspective, isn't this supposed to be an investors dream?

Mainstream Media Finally Gets Nuclear

We have steadfastly explained the many advantages of nuclear and uranium over conventional power plants that burn depleting, inefficient and dirty fossil fuels. Nuclear even trumps renewable forms of energy in most situations. As our growing world gets serious about achieving abundant, reliable, low-cost and environmentally friendly energy, there is no practical choice other than more nuclear power.

A couple of weeks ago the Globe and Mail published a compelling article—Staying cool? Thank nuclear power—with the subtitle: Unlike other fuel sources, it's both cheap and clean. Don't be spooked by the environmental naysayers. Click the link for the article, which I'll quickly review.

Nuclear has provided reliable power since the 1950s which we take for granted every time we crank up our air conditioners. The article reminds heat wave stricken Torontonians that over half of their electricity comes from nuclear, significantly more than gas, hydro and coal combined—with those high cost wind turbines contributing less than half of 1%.

Like wind and solar—nuclear power is green and creates no greenhouse gas emissions. An interviewed expert is cited: Nuclear energy is the most powerful weapon in the war on global warming. If Ontario's environmental lobby had succeeded in having nuclear power replaced by natural gas, the province's carbon dioxide emissions would have soared.

Kudos to the author for describing the dangers of nuclear power as one of the great myths of our time. She rightly points out that Chernobyl was a disastrously designed reactor (old even in 1986) that killed just 56 people (with about half of these deaths by fire or from tainted milk after cows nearby were allowed to continue grazing), and that Three Mile Island and Fukushima have killed none. Also mentioned is that today's engineering makes nuclear power the safest form of energy that we have, next to wind (I presume this means excluding bird safety).

To put this into context, search for and tally the lives lost, environmental damage and other costs of major oil spills by BP in the Gulf of Mexico 2010 or by the Exxon Valdez in Alaska 1989; or more recently the oil train derailment in Lac Megantic Quebec, or the tourist island oil spill in Thailand. Since 1986 the U.S. has seen something like 8,000 pipeline incidents, 500+ deaths, 2,300+ injuries, nearly $7B in damage and 3M+ gallons spilled. For each nuclear death 4,000 people die from coal!

Nuclear is the obvious choice, however I was somewhat surprised that leading environmentalists have changed their minds, now believing that nuclear power is the only effective way to curb greenhouse gas emissions as the world continues to industrialize... The environmental movement has made the world safe for coal. Some of the people mentioned in the article are also featured in a new documentary about nuclear as the only real energy solution, called Pandora's Promise.

Here's another quote: My fellow environmentalists have this romantic attachment to a certain view of the world, which does not fit with actually dealing with the engineering problem. This is the difference between evidence-driven and ideology-driven. You double down on your theory of the world, even if it's wrong. In the past I've put this another way: for the world's sake we need to wake up and realize the dirty facts of this deep energy hole we are all in together—and stop digging!

From the last section: If we want to avoid catastrophic global warming, nuclear energy is essential. It's worked in Ontario; since the province refurbished its nuclear plants a decade ago, greenhouse gases have plummeted from 40M tonnes to 16M tonnes a year—with virtually no help from the Liberal government's vastly expensive green energy schemes. That is a stunning achievement. No other jurisdiction has done this without shutting down industries.

Many investors questioned the fundamentals of nuclear power after Fukushima as Japan, Germany and others rashly shut down their reactors or were considering this. We said that cooler heads would eventually prevail as the facts were on their side. Reactors would be restarted or politicians would face voter backlash resulting from higher power rates, frequent blackouts and more pollution. Japan's government changed to pro-nuclear last December; Germany's elections are next month.

Analyst's this year have been warming up to nuclear power again, and now the mainstream media seems to be coming back from the dark side. That's the usual pecking order I would have expected: contrarian and value investors first, analysts second, media third, with retail investors and momentum traders last. What I wouldn't have expected is for U3O8 and its miners' share prices to still be this low.

Uranerz Energy: Mine Completion In Sight

(AMEX: URZ)(TSX: URZ)(FRANKFURT: U9E) Uranerz Energy Corp. has to complete two Deep Disposal Wells (DDW) prior to commencing production at their first ISR uranium mine. To prevent mine construction from slowing down—while Uranerz waits for an approved $20M low-interest state loan to be fully processed—the company received a $6M bridge loan in June.

Instead of an announcement about when the company would start drilling their first DDW, we were pleasantly surprised on July 25th with Uranerz' Corporate Update—that the first well had already been drilled, and that drilling has started at the second well. Completion of both wells will take around five months, with production expected later this year or early 2014.

URZ popped around 20% after that release to as high as $1.64, now around $1.30 per share with a $100M market cap. Below are more of the finer details taken directly from URZ' corporate update:

"The Company's primary focus over the past year has been on construction of the processing facility and installation of the monitor, injection and recovery wells for in-situ recovery ("ISR") operations at its Nichols Ranch ISR Uranium Project, located in the Powder River Basin of Wyoming, U.S.A. Uranerz has completed drilling the first of two deep disposal wells which are required to be operational prior to commencement of uranium recovery operations. The first well has been drilled to a depth of 8,860 feet and the casing and cementing operations have been completed. The drilling rig will now be moved to the second deep disposal well site to start drilling operations there. A completion rig will begin the hole completion work on the first deep disposal well, followed by construction of supporting infrastructure. It is expected to take approximately five months to complete both wells, including the installation of necessary infrastructure and related testing.

The deep disposal wells will be used to remove non-hazardous byproduct solutions from the ISR process. The Company expects to start operations at the Nichols Ranch facility and commence uranium production later this year or early 2014, after the two deep disposal wells are completed.

As previously announced, the Company continues working with State administrators to complete the documentation for the closing of a $20,000,000 loan under the Wyoming Industrial Development Revenue Bond Program. The loan is expected to carry an annual interest rate of 5.75% and be repayable over seven years. Closing is subject to customary closing conditions and final approval of the State Treasurer and County Commissioners."

Sign-up at (or for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or quote to comment at our Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from is subject to the terms of our Privacy Policy and Disclaimer.

Sunday, August 11, 2013 39 Filtered Mid-Day Market Movers Recap

Mid-Day Market Movers focus on above average volume, price action, breakout chart trends and news - posted throughout the day live at the top of and on our Hot Sheet. Below recaps last week's movers, posted prices, week high price Wk-H:, and recent news. Submit any ticker symbol to our Detailed Quote Portal (top-left of all pages) for quotes, java charts, research and news, or to comment/share.

(NYSE: NOAH) Noah Holdings Limited $8.78 $14.15 $16.21 Wk-H: $16.87
- provides high net worth China wealth mgmt. services, Schedules Q2 2013 Earnings Release For Wed. August 21 And Updates Forecast
(NYSE: OWW) Orbitz Worldwide Inc. $6.25 $7.82 $12.38 Wk-H: $13.26
- retails airline tickets, hotels, car rentals, cruises, vacations, Q2: Rev. $225.8M +12%, $.6M Net ($18.1M write-off), Adj. EBITDA $42.9M +33%
(NYSE: IAG)(TSX: IMG) IAMGOLD Corp. $5.96 $4.87 Wk-H: $5.12
- mid-tier gold producer (6 mines on 3 continents) + REE & top 3 in niobium, Suriname agrees to lower power rates, extends Rosebel mine life
(NYSE: BITA) Bitauto Holdings Limited $14.09 Wk-H: $18.10
- Internet content and marketing for China's fast-growing auto industry, Unaudited Q2 2013 Results: Revenue +36.5%, Gross Profit +44.9%
(NYSE: TTI) TETRA Technologies Inc. $10.77 Wk-H: $11.46
- geographically diversified O&G services company, Announces Q2 2013 Results and Updates Guidance
(NYSE: GCA) Global Cash Access Holdings Inc. $7.87 Wk-H: $8.17
- to Provide Scientific Games a Digital Wallet for iLottery; Cash Access Services and Kiosks to Graton Resort & Casino; Q2 2013 Results
(NYSE: NTE) Nam Tai Electronics Inc. $7.38 Wk-H: $8.15
- electronics maker and services provider transforming to a real estate development co., Q2 2013 Sales +64%, Gross profit margin 9.4%
(NYSE: GCAP) Gain Capital Holdings Inc. $6.99 Wk-H: $7.74
- online trading services, Strong Q2 on Record Net Revenue +59.7% to $73M & $0.44 Dil. EPS, EBITDA and Net Inc. triple to $26.9M & $17.2M

(AMEX: INO) Inovio Pharmaceuticals Inc. $0.53 $0.75 $0.65 $0.74 $1.04 $1.25 $2.10 Wk-H: $3.03
- Responds to Market Activity; Potent hTERT DNA Cancer Vaccine Shows Potential to Reduce Tumors and Prevent Tumor Recurrence
(AMEX: UVE) Universal Insurance Holdings Inc. $4.99 $5.88 $7.95 $8.12 Wk-H: $8.59
- Florida homeowners ins. co. now in N&S Carolina, Hawaii, Georgia, Mass., Maryland, Q2 Net Inc. +119%, EPS +132%, bought 6.7M cheap shs.
(AMEX: IMUC) ImmunoCellular Therapeutics Ltd. $2.73 $3.15 $3.56 Wk-H: $3.69
- developing immune-based therapies to treat brain and other cancers, to Report Q2 2013 Financial Results on August 7th
(AMEX: BMJ) Birks & Mayors Inc. $1.34 $2.13 Wk-H: $2.50
- 52 luxury jewelry stores across Canada, Florida and Georgia, New Remodeling and Growth Financings; Q1 Comparable Store Sales +9%
(AMEX: NTN) NTN Buzztime Inc. $0.26 $0.45 Wk-H: $0.49
- trivia, card and sports games with messaging and marketing to 3.5M+ players at 3,600 bars & restaurants since 1985, May 9 Q1, Q2 soon?
(AMEX: IBIO) iBio Inc. $0.62 Wk-H: $0.65
- develops product apps. of its iBioLaunch/iBioModulator platforms, Commercial Vaccine IP Expanded by New iBioModulator Patent Allowance

(NASDAQ: GRPN) Groupon Inc. $5.00 $6.23 $7.73 $9.13 $10.60 Wk-H: $11.22
- global leader in local commerce at unbeatable prices, Q2 2013 exceeds operating income expectations, delivers strongest quarter ever
(NASDAQ: LITB) LightInTheBox Holding Co. Ltd. $14.79 $17.28 $21.51 Wk-H: $21.87
- global online retailer that delivers products directly to consumers around the world, Q2 2013 Financial Results on Monday August 19
(NASDAQ: SGOC) SGOCO Group Ltd. $1.30 $3.21 $2.45 Wk-H: $3.10
- focused on product design, dist. and brand development in flat-panel displays, to Announce Q2 2013 Financial Results on August 20
(NASDAQ: NPSP) NPS Pharmaceuticals Inc. $9.77 $22.63 Wk-H: $23.09
- focused on rare diseases, Reports Q2 2013 Results and Business Update: Gattex sales accelerating, Natpara fill-finish issue addressed
(NASDAQ: GTAT) GT Advanced Technologies Inc. $4.11 $5.47 Wk-H: $6.20
- innovative crystal growth equipment and solutions for solar, LED and electronics, Q2-13 Margin, EPS & Cash exceeds, Revenue in line
(NASDAQ: PXLW) Pixelworks Inc. $4.04 $4.64 Wk-H: $5.30
- pioneer in innovative video display processing technology, Reports Q2 2013 Financial Results: Revenue $9.6M +15.5% vs. Q1
(NASDAQ: FSYS) Fuel Systems Solutions Inc. $20.54 Wk-H: $21.44
- maker of alternative fuel components for autos & industrial, Q2 2013 Results: $111.1M Revenue, $4.8M Operating Income; Affirms Outlook
(NASDAQ: AMED) Amedisys Inc. $17.74 Wk-H: $18.70
- a leading home health & hospice co., Reports Q2 Financial Results, adj. EPS $0.17 +$0.03 seq.; Proposed Settlement of Derivative Litigation
(NASDAQ: PCMI) PCM Inc. $11.46 Wk-H: $11.96
- a leading technology solutions provider, Record Q2 Results; Kevin O'Leary of ABC's Shark Tank to Keynote PCM Vision IT Conf. in S.F. Aug 13
(NASDAQ: DGIT) Digital Generation Inc. $10.31 Wk-H: $10.59
- world's leading multi-screen (TV, online, mobile) ad management co., Reports Q2 2013 Results: Online revenues +19%, EBITDA +68%
(NASDAQ: DYNT) Dynatronics Corporation $5.51 Wk-H: $7.94
- maker of advanced-technology medical devices, orthopedic soft goods, Introduces New 25 Series Product Line Into Expanding Dist. Channel
(NASDAQ: NEWT) Newtek Business Services Inc. $2.99 Wk-H: $2.99
- Reports Q2 2013: Dil. EPS $0.05 +67%, Total Operating Revenues $37M +14.5%, Reaffirms Guidance, Expects 20% EPS Growth in 2013
(NASDAQ: PTIX) Performance Technologies Incorporated $2.30 Wk-H: $3.97
- a leading global provider of advanced network communications solutions, Q2 2013 Financial Results, GAAP Profit & Seq. Revenue +13%
(NASDAQ: SMT)(TSX: SMA) SMART Technologies Inc. $2.19 Wk-H: $2.70
- a world leader in interactive displays, Q1 2014: Revenue $155.9M, Gross margin 42.4%, Adj. EBITDA $27.5M, Adj. Net Income $16.8M
(NASDAQ: OXBT) Oxygen Biotherapeutics Inc. $1.78 Wk-H: $2.22
- developer of oxygen-carrying therapeutics, Shareholder Letter re: Oxycyte for traumatic brain injury treatment, funded $5.4M in July

(OTCBB: NNVC) NanoViricides Inc. $0.84 $1.01 Wk-H: $1.18
- Signs NDA with Lovelace Resp. Research Instit. for Efficacy Studies on FluCide, to Test its Novel Drug Candidates against Highly Lethal MERS
(OTCBB: YPPN) Yappn Corp. $0.12 Wk-H: $0.16
- at (OTCBB: WIZD) Wizard World Chicago Comic Con, Aug. 8-11 to Provide Real Time Global Social Media Activity in Almost 70 Languages

TSX (quote T. and ticker symbol)
(TSX: ACQ) AutoCanada Inc. $18.77 $25.78 $31.80 Wk-H: $32.54
- one of Cda's largest auto dealers, reports most profitable quarter in history, earnings +61.2%, raises dividend for 10th consecutive quarter
(TSX: AC.B) Air Canada $1.43 $2.90 $2.65 Wk-H: $2.96
- Canada's largest airline serving 175+ destinations on 5 continents, Reports Record Second Quarter 2013 Results
(TSX: BKX) BNK Petroleum Inc. $0.80 $1.11 Wk-H: $1.25
- international O&G explorer with shale gas production in the U.S., Poland, Germany and Spain, Announces 2nd Quarter 2013 results

TSX Venture (quote V. and ticker symbol)
(TSXV: FCU) Fission Uranium Corp. $0.69 $0.80 $0.73 $0.87 $1.04 Wk-H: $1.10
- with 50% PLS JV partner (TSXV: AMW) Alpha Minerals, 18.5m Mineralization Incl. Total Composite of 4.94m Off-Scale Expands R00E Zone
(TSXV: GRB) Greenbriar Capital Corp. $1.17 $1.88 $3.00 Wk-H: $3.05
- develops renewable energy and sustainable real estate projects, Completes Acquisition of Blue Mountain, Utah Wind Energy Project
(TSXV: AOS) Alberta Oilsands Inc. $0.125 $0.17 Wk-H: $0.18
- bitumen leases in the Athabasca oil sands NE-Alberta, new initiative on the East Africa Rift System, Updated Overview of Assets and Activities
(TSXV: TGM) True Gold Mining Inc. $0.29 Wk-H: $0.31
- Step-Out Drilling 1,400m North of Kao Returns 1.08 g/t Gold Over 50.0m, Results double strike length at the Karma Project's largest deposit
(TSXV: FLY) FLYHT Aerospace Solutions Ltd. $0.255 Wk-H: $0.255
- a leading provider of real-time data communications technology for the aviation industry, Reports Q2 Results, YOY Revenue +36%

Sign-up at (or for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or quote to comment at our Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from is subject to the terms of our Privacy Policy and Disclaimer.