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Mon, 10 Apr 2006
Terry Savage on the Dines Newsletters' Uranium Call.
Where will all this uranium come from? From mining companies in the U.S., Canada and Australia. And, along with the price of uranium itself, the stocks in those companies have already soared. Dines' proprietary index of uranium stock prices is up 1,112% in the past few years. His explanation is that even though there is an abundance of uranium in existence, higher prices and demand will encourage production and profits. Dines' recommended list includes companies such as Cameco (CCJ:NYSE - news - research - Cramer's Take) (up 1,839% since he recommended it several years ago) and Fronteer (FRG:Amex - news - research - Cramer's Take), as well as Pinetree Capital, Mega Uranium and Laramide Resources, which trade on Canadian exchanges. If demand for uranium continues as predicted, these stocks will become as familiar as JDS Uniphase (JDSU:Nasdaq - news - research - Cramer's Take), Cisco (CSCO:Nasdaq - news - research - Cramer's Take) and Brocade (BRCD:Nasdaq - news - research - Cramer's Take) were in the late 1990s. (And, of course, you recognize the risk inherent in these speculative situations, having learned the lessons of history.) So, far from recommending uranium stocks as a speculation at this point (though Dines considers this just the beginning of the move), this is a wake-up call to the issue of energy independence that will dominate our future. And I write this column to give Dines some well-deserved credit for his farsighted investment advice, once again. That's The Savage Truth.
Posted 06:30

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