John Polomny's  Instablog

This will create one of the largest US based uranium producers:

Energy Fuels and Strathmore believe the Transaction will position the newly combined Energy Fuels as the premier pure-play U.S. uranium company, supported by significant current uranium production of 1.175 million lbs. for its current fiscal year, as well as a robust pipeline of development projects. The U.S. remains the largest consumer of uranium globally, yet it is heavily reliant on imported uranium for over 90% of its supply requirements. Energy Fuels is well-positioned as a large, reliable source of uranium supply within the U.S., currently accounting for over 25% of estimated U.S. production.

Stephen Antony, President and CEO of Energy Fuels commented, "It is rare to find an acquisition that offers the magnitude of synergies that we believe exist between Energy Fuels and Strathmore. I am very excited about the merits of this transaction and the opportunity it represents for the shareholders of both companies. It is consistent with our corporate strategy and significantly strengthens the company's long- term production profile throughout the Four Corners region of the southwest U.S. and in Wyoming. Strathmore is recognized for building a quality portfolio of U.S. uranium projects, and I look forward to working with them and their partners to realize the many synergies and to capitalize on the strengths that are created by this transaction."

David Miller, Strathmore's CEO continued, "We are excited to enter this transaction with Energy Fuels, which represents a strong fit with Strathmore's asset base and a significant step forward in both the near- term and long-term development of our U.S. uranium portfolio. We evaluated this transaction extensively and believe the synergies between Energy Fuels and Strathmore are substantial. We look forward to the completion of this transaction which we expect will contribute to our shared goal of becoming the dominant uranium producer in the United States, and ultimately create significant value for our shareholders."

My take is that uranium is on the cusp of a major surge in price due to supply/demand fundamentals which I have shed light on in the past. Acquiring these assets while uranium is still out of favor is a great move in my view. Patience will be required but nuclear power is not dead and in fact is growing. As Rick Rule at Sprott Asset Management says, "either the uranium price goes up, or the light s go out". His thesis is here and here. I continue to acquire shares of Energy Fuels on dips.

Disclosure: I am long EFRFF.PK.

I am selling out my position in the Vietnam Opportunity Fund. I am looking at a round a 40% gain so I am going to take it. The reason is the nervousness I have with the economy in Vietnam coupled with the fact there are issues with getting out of this in an orderly fashion. It can be done with limit orders in a reasonable amount of time but with markets trading at all time highs I think it will be difficult to sell this security if we have a market break. I really do not like what is happening with the economy in Vietnam relative to other opportunities in Mongolia, Myanmar, Cambodia, etc.. I am taking my 40% gain and moving on for now.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Link to press release:

Cortex Business Solutions Inc. reports the following network statistic updates for the month of April 2013. This report is issued by the second Thursday of each month.

Summary

• Since our last report, 4 new buying organizations have been signed:
  • Callon Petroleum Company
  • I-Dent
  • Rock Energy
  • West Valley Energy Corp.
• Year over year, transactions on the network increased 38% from 695,886 in April 2012 to 958,997 in April 2013.
• Total Customer Contracts increased 25% from 7,339 in April 2012 to 9,147 in April 2013.
• 114 new suppliers were added to the Cortex Network in April 2013.
• 51 Hubs are now live on the Trading Partner Network, an increase of 200% year-over-year.

I was a little nervous last month as transactions appeared to be slowing. However this month they are showing 38% year over year growth. This will be a little lumpy going forward I think but as the network continues to grow virally I still anticipate further growth each month. At some point the effects of compounding takes over. Hopefully this will be reflected in a higher stock price.

Disclosure: I am long CTXZF.PK.