SARASOTA, Fla., Feb. 7, 2006 (PRIMEZONE) -- Sprott Asset Management Market Strategist Kevin Bambrough and Portfolio Manager Jean-Francois Tardif shared their ten best tips in evaluating uranium companies for investment purposes. Using successful investments in various uranium development companies as a guideline, the Sprott team told StockInterview.com how they reached their decisions to invest in many developing uranium companies, such as SXR Uranium One (TSE:SXR), Paladin Resources (TSE:PDN), Western Prospector (TSX-V:WNP), Tournigan (TSX-V:TVC), Energy Metals (TSX-V:EMC) and Strathmore Minerals (TSX-V:STM). During the nuclear energy renaissance, and the consequent boom in uranium stocks, Sprott Asset Management has reportedly invested about C$175 million, or about 6.7% of the firm's more than C$2.5 billion under management, in the uranium sector.
The ten best investment tips in choosing a uranium stock include looking at past ownership of a uranium property, especially those which major companies drilled during the last uranium boom and were abandoned during the lows of the ensuing bear market; looking at the property's infrastructure, especially its water and electricity costs to explore, develop and mine; and finding the hidden value in a developing uranium company, as found in the valuable databases held by Strathmore Minerals and Energy Metals Corporation. Those were acquired from well-financed uranium exploration companies, which spent millions drilling their properties, during the uranium boom of the 1970s.
Bambrough warned of risks when investing in uranium stocks during his interview with StockInterview.com, "Personally, I think there's a lot of speculation going on in the sector and some things maybe of lesser quality. It's a little staggering and obviously you get a little uncomfortable when things move up so fast." Bambrough added, "We get comfort in investing in more of the known projects where we consider the economics and justify the price we pay."
Part one of a two-part series, comprised of an interview with Market Strategist Kevin Bambrough and Portfolio Manager Jean-Francois Tardif, as well as the ten investment tips may be viewed at: