Uranium stocks and the danger to your capital

  1. 1.2k
    Posts

    This Uranium stock hype is becoming dangerous. Reading other web boards it looks like everything to do with Uranium is a buy. The brokers and market makers are quick to cotton on to this and the broking industry is in full swing getting U into every concievable listed vehicle. Uranium was not that valuable last year and still will not be as valuable next year. Stocks that rise 10% per day are just a recipe for a disasterous crash.

    These are great if you trade in and out quickly on the greater fool theory but do not get caught up in the meltdown. There are plenty of new players to the market that have only seen the rises in the market and not the falls.

    Be very very careful playing with the hype of this market. To me it is looking very over heated but it still has some way to go before the music stops and the big sell off starts at full speed. One just has to look at the oil industry and compare the way oil shares trade. Energy stocks do not go up in value 10 times in 2 months. It is just not sustainable.

    The trick is to pick up fundamentaly solid stocks in the metals that are being ignored and sold down by those who think they are on the path to riches. My point of view will be proven to be correct but just when is the big question for now.

  2. 42.0k
    Posts

    Thanks for the great advise: Iam new o share investing, what would you recommend as ten to twelve quality standout stocks if I were to start investing to set up a portfolio?

    Thanks

  3. 1.2k
    Posts

    Ask a broker as per legal requirements I cannot recommend anything to other people. I can recommend stocks to myself such as LNG ESG AZA BQT ADY.

    Best to do some research as the stock market is full of gangsters. Listen to nobody and do your own research as best you can.

  4. 648
    Posts

    I'm assuming you're interested in a medium to long term buy and hold strategy rather than short term trading.

    If so I think you really need a good source of fundamental analysis for stocks.

    One service you might want to investigate is http://www.lincolnindicators.com.au/stockdoctor/index.html

    I believe they have a trial subscription and this may help you decide if this product is suitable for you.

    As for stock selection I would suggest you initially do some research on the sectors which are likely to outperform during the next 12 months or more, and then find stocks with strong fundamentals and growth prospects within those sectors.

    Also read anything and everything you can on business and finance - get on line and give Google a good thrashing - you will be surprised how much good free information is out there.

    Here's one example : http://www.aireview.com/welcome.php

    Obviously stock forums such as this will give you plenty of ideas but of course always follow up with your own research.

    Cheers

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