October 18, 2007 Spot price up, stock prices down     Publisher: U3O8.biz     Author: Luke Brocki
	Industry indicator UxC Consulting quickly followed in the footsteps of rival indicator TradeTech and raised the spot price of uranium $3 to US$78 this week. This marks the first increase in 16 weeks. Analysts continue to muse about a price bottom for uranium and the beleaguered metal is expected to again attract investors now that it's showing signs of strength. Analysts remain excited about four new transactions and higher trading volumes---by speculators, traders and most importantly, utilities---as buyers seem to finally be returning to the spot and long-term uranium markets. One of the four transactions posted last week saw uranium worth around $78 a pound and triggered the spot price increase. The Resource World composite uranium stock index, an index based on the performance of nearly 100 uranium companies, fell more than 22 points Wednesday to 1,220.58. That's a slide of nearly two per cent, but the index is still 20-odd points above the 1,200-point threshold it last enjoyed in the summer months, back when uranium spot prices were red-hot and hovering around US$138. Uranium One Inc. was one of the most actively traded companies on the TSX Wednesday, moving nearly seven million shares. Still, it finished down 19 cents, or 1.7 per cent, at $10.94. But analysts remain excited about the company despite a recent string of bad news that fuelled a big drop in its stock price. The consensus seems to be the company's stock dropped further than was warranted by Uranium One's difficulties in Kazakhstan and investors could now be facing a buying opportunity. Elsewhere on the TSX, Bayswater Uranium Corp. took a beating, dropping 15 cents, or nearly 14 per cent, to 94 cents. But the company has also just released news of its second merger of 2007 and the latest in a flurry of deals that began in July. Bayswater has just signed an all-stock deal with Northern Canadian Uranium, thus gaining exclusive access to 13 uranium projects in Canada, the United States and West Africa. And, despite the recent drop, Bayswater stock has gained nearly 50 cents, or more than 50 per cent, since August's doldrums. News of the upcoming takeover was also good for Northern Canadian stockholders. The company's stock skyrocketed nearly 36 per cent, or 14 cents, to 53 cents. Erdene Gold Inc. was up 17 cents, or 14 per cent, to $1.37, after announcing it found a significant new molybdenum zone at the company's Zuun Mod area in southern Mongolia. Fortress Minerals Corp. gained 23 cents, or 14 per cent, to close at $1.85 Wednesday, amid news that its drilling project in far eastern Russia intercepted some high-grade gold levels. Cline Mining Corp. just about rebounded from Tuesday's losses, as it gained 4.5 cents, or nearly 17 per cent, to close at 31.5 cents. East Asia Minerals Corp. led the losers with a devastating 32-per-cent drop. The company lost 90 cents on the TSX Wednesday, closing at $1.90. This came just one day after the company announced potentially significant gold mineralization at its Bawone prospect on Sangihe Island in Indonesia. Romios Gold Resources Inc. dropped nine cents, or 13 per cent, to 61 cents, two days after announcing the completion of its summer exploration program in the Galore Creek of northwestern British Columbia.
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