Topic: How To Invest

What is your view of Uranium Participation Corp.? Is there a better way to profit from a rebound in uranium prices? Thanks.

Article Excerpt

Uranium Participation Corp., $5.25, symbol U on Toronto (Shares outstanding: 106.4 million; Market cap: $558.6 million; www.uraniumparticipation.com), is a holding company that was created to invest almost all of its assets in uranium oxide (U3O8). Denison Mines (symbol DML on Toronto) manages Uranium Participation Corp. The company began trading in May 2005 after it issued 20 million units at $5 each to raise $100 million. Each unit consisted of one common share of Uranium Participation Corp. and one-quarter of one warrant. Each whole warrant entitled the holder to acquire one common share at $6.25 per share until May 2007. Uranium prices reached an all-time high of $136 U.S. a pound in 2007 on fears of shortages. As a result, Uranium Participation Corp. shares hit an all-time high of almost $19. However, the shortages never materialized. Uranium prices then steadily declined to a low of $40 U.S. a pound in 2009, then rebounded to $64 U.S. in February 2011. That rebound moved Uranium…