x2rider said:Go nuke
Might be a bit harsh at $ 9.40 for PDn. The gap yesterday had to be filled so that would come to $9.90 . With the underlying trend line I sort of get a price of about $9.60 . $10.00 today was a great day after the large gain the day before . There was some real " buy at all cost " yesterday as people thought that they would miss out . I expect the price to hang around withinn a couple of % for the next few days . I suppose the next big news will be the cigar lake fiasco
Cheers martin
Might move this to PDN thanks mods
mickqld said:GSJBW website today has a short term marketperform, long term sell recommendation on ERA. Their forecast share price was between $13.54 to $18.24. They seem to be saying that uranium spot price has seen uranium companies become overpriced and expect them to fall back if the uranium price does not rise much above $110/lb.
The uranium price, already at $US95 ($117) a pound, could be set for further gains this week after Energy Resources of Australia said production from its Ranger mine in the Northern Territory would be flat this year and 25 per cent to 35 per cent lower next year. ERA, which is controlled by Rio
What's the feeling: at what level will this become a buying opportunity again?
(holding)
DARWIN, Australia (Dow Jones)--Rio Tinto Ltd. (RTP) said Monday a flare-up with traditional landowners over the Jabiluka uranium deposit in Australia's Northern Territory was a misunderstanding and not a major issue.
Shares in Rio Tinto subsidiary Energy Resources of Australia Ltd. (ERA.AU) slumped last week after the traditional owners of the land, the Mirarr people, said they were distressed by comments from Rio energy chief executive Preston Chiaro that the Mirarrs could soon approve development at Jabiluka, and restated their opposition to the mine.
"I do believe there was an element of misunderstanding in there and to the extent that that is being addressed I don't believe that it should be a major issue," Australian Managing Director Charlie Lenegan told Dow Jones Newswires in an interview.
Speaking on the sidelines of the Asia-Pacific Economic Cooperation Energy Business Forum, Lenegan said the misunderstanding had been unfortunate, but the miner has now reconfirmed that Jabiluka won't proceed without the support of the traditional owners.
Lenegan said Australia was well placed to become the leading supplier of uranium to growing Asian economies.
"There will be competition from other parts of the world, but we are very, very prospective in terms of low-cost nuclear sources," he said.
"We (Australia) may have as much as 40% of the resources capable of coming on at fairly low costs, and that has to position us very well to compete in that international market," he said.
At 0247 GMT, Rio Tinto shares were up 1.8% at A$94.37 and Energy Resources was down 1.8% at A$22.35.
Anyone taking a punt that the Mirrar people will cave in to $$$ and give Jabiluka the go ahead? My money would be on $$$ ruling the day in the end. If they make that call, ERA should be very very well supported.
This could be worth a few c to ERA today. There's obviously something in it for the NLC.This is exactly how I see it. Too much at stake for the two parties not to sort out some solution, probably lubricated with cash incentives.
Thanks for the analysis, Kennas.
H&S pattern finalised at $22 ish today after releasing reduced earnigs guidance. $20 is also horizontal support and I see this as a potential consolidation area. I think that Jabiluka will be a goer after ERA agree to enough compensation which will result in ERA starting a new operation unheadged to a $200 ish uranium price perhaps. Long term the spot is obviously going to come back and even if it gets back to the lowest forecast that I have seen ($35) that will still make Jabiluka economical. (I thinkCouple of things happening here.
Uptrend broken of course.
Tenuos H&S formed earlier, with target $20.
Hit support at $22 and bounced. Maybe a dead cat.
Anyone taking a punt that the Mirrar people will cave in to $$$ and give Jabiluka the go ahead? My money would be on $$$ ruling the day in the end. If they make that call, ERA should be very very well supported.
Well, we bit the bullet and took saw Thursday as a buying opportunity. Whether we are on the money or misjudging the tech aspects will be seen over the upcoming months.
Reading the Melbourne Sunday Sun today in the 1 page finance sectionGulp - seems we may have misjudged the bottom (just a little!). Now sitting on $18.65 - but all the money's spent. Bummer!
I still have faith in the future though and agree with the sentiments expressed above.
Reading the Melbourne Sunday Sun today in the 1 page finance sectionthey have 3 brokers (experts ) give their Buy, Hold and Sell recommendations. One of them had ERA as a Sell, and one had it as a Buy.
It goes against a few general TA guidelines for ERA to have broken down through $20.00, so it's a little disturbing. There looked to be clear support at that level, coinciding with the 200d ma, so a break through that is significant. More support around $18.00 so it should pause there. But golly, what a fall from grace in a uranium bull market. Looking back, that break down through $24.00 in mid May, through upward support trend line, was the clincher.
This might be just part of the rotation around the commodities atm, and I think there's been lots of money transferred from U to O&G and the BIG miners. I think the really big money has gone into BHP, RIO and WPL over the past week.
I'm looking at this as a solid turn around story eventually. Maybe. Watching for the break up.
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