QVM Group

Cameco Rounds Out Commodities Allocation

I do not know the answer to your question. I made a long-term decision first about uranium, then about Cameco. When spurts come, I say thank you and take a little bit of profit, as I did the other day as part of my personal high frequency rebalancing program.

Cameco Should Ride The Uranium Boom

I really don't know much about it, but did take a look today, and that's the problem -- I still don't know much about it compared to a similar investment of time into other more substantial situations. My bottom line is that I would walk a wide circle around this one and find other ways to invest in uranium.

The concept of the company as a hard asset holding company is similar to that of the gold and silver ETFs traded in the US (GLD, IAU and SLV), however the manager of the assets, Dennison Mines (TSE symbol DML), does not remotely compare to Barclays Bank or State Street Bank which manage those gold and silver ETFs.

The company is managed entirely by Dennnison Mines, a small company, that does not have enough size, history or institutional character for my taste to be the sole party responsble for the uranium participation company.

The amount of information available at the websites for Dennison Mines and for Uranium Participation Corporation are less than I would consider adequate for my purposes and does not give me confort as to the quality of the opportunity.

Dennison Mines' website is still under construction and they do not provide links to download financial statements and the pages to present management have "Under Construction" images instead of information. The company itself is just recently formed by merger of two others.

The participation company shares appear to be trading at a substantial premium to the underlying NAV. The Nov 30 month-end NAV report showed $CD 8.75 per share NAV while a graph of stock prices elsewhere on the site seemed to show approximately $12.50 stock price (a 43% premium). That makes no sense to me as an opportunity.

Only one analyst covers the participation company and that analysts is not a well known name in the USA. You need to do a lot of research before committing money to a situation of that size and character.

My advice is that there are better ways to make money with less risk and far, far more information. AVOID both "U" and "DML"

Here is the DML contact information:

Investor Contact:
Sophia Shane
Denison Mines Corp.
Atrium on Bay
595 Bay Street, Suite 402
Toronto, Ontario
M5G 2C2
1-888-689-7842
[e-mail]

E. Peter Farmer, President [phone] Ext. 231
James Anderson, Chief Financial Officer [phone] Ext. 372


Here is the contact information for the one analyst following DML:

Justin Reid
Sprott Securities Inc.
Royal Bank Plaza
P.O. Box 63
South Tower, Suite 2750
Toronto, Ontario
Canada M5J 2J2
Telephone: [phone]
Facsimile: 416-943-6499
Toll Free: 1-800-461-2275
www.sprott.ca/research...


Here is the contact information for Uranium Participation Corporation (U)

Toronto Stock Exchange (TSX.com) Date of Listing: 09 May 2005
Company formation: March 15, 2005

Address:
595 Bay Street
Suite 402
Toronto, ONT
M5G 2C2
Canada

Phone:
[phone]

Fax:
[phone]

Web Address:
www.uraniumparticipati...

Investor Realtions Email Address: scolman@denisonmines.c...
Investor Relations Professional: Ms. Sheila Colman


Here is some descriptive information about Uranium Participation Corporation from their website:

Uranium Participation Corporation

Uranium Participation Corporation is an investment holding company which invests substantially all of its assets in uranium, either in the form of uranium oxide in concentrates ("U3O8") or uranium hexafluoride ("UF6"), with the primary investment objective of achieving appreciation in the value of its uranium holdings. The objective of the Corporation is to provide an investment alternative for investors interested in holding uranium. Denison Mines Inc. is the manager of Uranium Participation Corporation.

Securities of Uranium Participation

Uranium Participation Corporation’s securities are listed and trade on the Toronto Stock Exchange. Its common shares trade under the symbol U. It has two series of warrants listed on the TSX: U.WT (exercise price $6.25; expiry May 10, 2007) and U.WT.A (exercise price $12; expiry September 14, 2008).

Net Asset Value

Uranium Participation Corporation's net asset value is calculated and reported monthly. To obtain the latest net asset value per common share reported by Uranium Participation Corporation, click on this link: NAV

Uranium Spot Price

The weekly uranium spot price is posted weekly by The Ux Consulting Company, LLC. To obtain the posted spot price, visit uxc.com.