Reader Question: Energy Metals Corp.

I had a reader question regarding a uranium company called Energy Metals Crop (EMC:TSX). His asked what I thought of the company being that I owned Denison and SXR Uranium One.

The three are very similar companies. All three are current producers still doing heavy exploration. EMC has large property concessions in south western United States.

This company is very fundamentally sounds and I know many folks who own and love EMC. I would put a strong buy out there for this stock.

I am going to give a brief overview of my uranium investment strategy. First and foremost, I'm no millionaire, well not yet at least. I have to be a little more ticky tacky with my investments. I stayed away from the juniors in this sector because they seem to be coming out of the wood work. I really wanted some companies that were producing, but were still looking to expand through acquisitions as well as exploration. For that to be possible, there needed to be significant capital.

Eliminating juniors because I the intermediates were already a good enough risk/reward pay off for my taste. I cut my picks down to 4 companies. Obviously Denison, and SXR, as well as Energy Metals and Cameco. A couple weeks before I purchased into uranium, Cameco's Cigar Lake mine flooded. They were dead money, although they might be a good buy now as I believe the flood has been properly priced into their stock. With the three remaining, and I liked all of them. My favorite was and still is SXR, but Denison and EMC weren't far behind. After discussing with some proven uranium investors and other good friends whose opinions I respect very much, I went with Denison.

As far as your question on my thoughts of EMC, I like it very very much. I think my holdings in uranium won't increase too much here, as I am planning on increasing my oil exposure as I expect oil to push to around $75-$80 this summer.

Thanks for the question and keep them coming. Also, if you wish to send me a question via email, feel free. My address is jones973@tc.umn.edu