adding MGA, Mega Uranium

On May 05 we wrote,

Mega Uranium, MGA in Canada, remains our uranium stock of choice and we'll be adding below $7.00 for long-term holdings. We hold it at a 24% gain per this blog. It has recently pulled back from a big jump to its all-time high in early April.

Mega Uranium is a rapidly growing, internationally diversified, mineral resources company focused on acquiring and exploring uranium properties worldwide. Mega has uranium resources totaling 47.3 million pounds U3O8 in Australia, and active uranium exploration projects in Australia, Argentina, Bolivia, Colombia, Mongolia and Canada.

We now add to our existing position in Mega Uranium at this $6.30 CDN level. Note that Mega also trades as MGAFF in the US. We feel support can be found down to the $6.00, on closes below which we may turn bearish.


We also note current fair entry levels on the following (italics representing further excerpts from our May 05 update) :

Also at an all-time high is our long-term favorite Hammond Power Solutions, HPS.a in Canada. We hold an initial position in Hammond at a 222% gain plus an additional position at a 35% gain. We also made a 23% gain in two weeks on a recent swing position, all per this blog.

Hammond is a growing and profitable supplier of transformers and related magnetic products. Be sure to click the link above to marvel at their excellent progressive earnings and ponder the bright future of this company.

Hammond dipped today to close at $11.95 We'd be sellers to lock-in gains on closes below $10.00, however those entering currently for the first time may wish to apply a more aggressive stop level of $11.00 to minimize risk.


Uracan Resources, URC in Canada, is our most recent entry and while we view it as currently consolidating within an up-trend begun in September of last year, we'd be especially bullish and likely adding to positions on a close above $1.00

Uracan Resources is exploring for near surface, bulk tonnage uranium deposits in Canada, as this style of deposit can be developed quickly and inexpensively. The company's first two projects have abundant historical data showing several pounds U3O8 per ton over large areas, are easily accessible and have year round access. Management has an excellent track record in creating value for shareholders. Several of their exploration companies have been purchased by mining majors, and they have put mines into production for a major mid-tier gold producer.

When Uracan did cross $1.00 it kept on going and going, rising to a high of 57% above our April 10 entry at $0.94 and closed today at $1.34 We hold, and would not add unless it falls below $1.10



Red Hill Energy, RH in Canada, is a stock on which we remain very bullish above $1.00 We hold our core position at 81% gains and recently sold a swing position for a 64% gain in two weeks per this blog. Red Hill might be a buyout candidate per this press release.

Red Hill Energy is a publicly traded energy company that engages in the exploration, development and (currently) pre-production of advanced coal and uranium projects. The Ulaan Ovoo Coal project has just had it's scoping study completed and shows the potential for a 20 year highly profitable mine. With 206.2 million tonnes of high quality bituminous coal to NI43-101 compliance, the Ulaan Ovoo project continues on it's path to towards production.

The newly acquired Chandgana Tal Coal project has historical data showing 90 million tonnes of sub bituminous coal and Red Hill plans to move the resource to NI43-101 standards. Red Hill is joint ventured with Mega Uranium Ltd of Toronto and has 11 Uranium properties covering 216,170 hectares. The results of field work conducted in 2006 provided Red Hill with a number of targets for advanced exploration with 7 Uranium properties selected for further work in 2007.

An entry here, or re-loading of our position sold for 64% gains in only two weeks on May 02, seems prudent to us per the trend line. We'd likely be sellers on closings below $1.00 so downside would be limited if adhering to a similar sell level.


Mega Uranium

Hammond Power Solutions
Uracan Resources
Red Hill Energy


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