The Case For Uranium Continued...
The Case For Uranium Continued...
By, Lathigee, Mike
A few years ago at a live event I bought a basket of stocks in a hot sector live on stage to teach the proper use of “diversification” as a strategy. This list was published on my website to monitor the ongoing performance. The point of this case study is to show that most financial advisors teach “diworsification” which is defined as investing in several sectors to spread the risk, but in most cases underperforming the markets by the management fee. Some sectors go up and some go down, thereby the average investor performs the market index less the fees they pay to their financial advisor (in other words most investors under-perform the market as a result of the teachings of their financial advisor.) Unfortunately, this is the strategy taught by most large financial institutions especially banks and is a long slow process to the “poor house” for investors as Mutual Funds generally underperform market indexes when the management fee is factored.
Uranium was going much higher due to strong demands versus limited supply. I advised investors to heavily invest in uranium years ago when uranium was under $10 a pound. One of the investors Dave Melles was published in the Globe and Mail, for his strategies on making money. “I credit my investing success on Mike’s teachings of trend investing in sectors like uranium and oil.” Thanks for listening Dave and congratulations!
When “Buy and Hold” as a strategy works. Once again the financial services industry’s teaching of “Buy and Hold” as a strategy, in most cases is incorrect and is taught to clients so they keep their money under management for as long as possible and advisors collect Management Fees. The Buy and Hold strategy works well with trend investing which I teach and the trend is moving upward in sectors like Uranium. Below is the actual positions purchased in brokerage account 16P-547A-8.
Starting Time of portfolio example:
May 2, 2005
Purchase Value: $86,590
Sale Value: $237,910 Gain in less than one year (April 06): 247%
| Investment | Qty | Price | Avg Cost | Market Value |
|---|---|---|---|---|
| ALTUS MNRL CORP | 1000 | 5.59 | 3.50 | 5,590.00 |
| ENGY MTLS CORP | 2000 | 7.24 | 2.31 | 14,480.00 |
| FORNTIER DEV GRP INC | 2000 | 7.80 | 2.40 | 15,600.00 |
| HORNBY BAY EXPL LTD | 5000 | 0.61 | 0.65 | 3,050.00 |
| INTL URANIUM CORP | 1000 | 6.35 | 4.54 | 6,350.00 |
| JNR RES INC | 5000 | 1.41 | 1.01 | 5,700.00 |
| LARAMIDE RES LTD | 3000 | 8.00 | 1.56 | 24,000.00 |
| MEGA URANIUM | 3000 | 9.43 | 1.43 | 28,290.00 |
| PALADIN RESOURCES | 10000 | 4.25 | 1.05 | 42,500.00 |
| SXR URANIUM ONE INC | 2000 | 10.25 | 4.4 | 20,500.00 |
| UGL ENTPRS LTD | 10000 | 1.57 | 0.47 | 15,700.00 |
| UR ENGY INC | 20000 | 2.32 | 1.10 | 46,4000.00 |
| WSTN PROSPECTOR GRP | 2000 | 4.20 | 2.91 | 8,400.00 |
NOTE: These stocks are cited solely to demonstrate the sector trend. They are not (and never have been)
recommendations to buy. Since timing is so important, investors are repeatedly warned that they should not buy
into lists of holdings without doing their own due diligence and consulting a registered advisor.
IMPORTANT: The stocks listed above are a historical representation of performance and are not recommended of purchase
