Bannerman Resources Lags Uranium Sector Upturn

John Robertson

PortfolioDirect

Uranium related equity prices have seemed in a never-ending descent belying the rosy outlook for likely usage of the commodity. My technical indicators have been pointing in recent weeks to a turn (although possibly only weak) in the Global X uranium ETF - a useful indicator of the price action for this market segment. In the Australian context, the technical inference has appeared consistent with modestly improved pricing for Paladin Energy, Deep Yellow and Peninsula Energy, for example. An odd one out among the uranium stocks has been Bannerman Resources. It has a history of tracking the ETF as the chart (showing Bannerman in blue and the ETF in yellow) illustrates. In the month so far, the ETF has risen 12.4% while Bannerman Resources has fallen an additional 12.9%. Bannerman had been one of the best positioned development opportunities in the sector leaving the 25 percentage point disparity in performance as an ambivalent signal of something afoot or a looming investment opportunity.


John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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