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Quality of Management Attracts PR
Home :: Finance :: Trading / Investing
By: James Finch Email Article
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Late Friday afternoon, while watching Bart Jaworsky, associate mining analyst for Raymond James, discuss his three top uranium stocks on Canada’s ROB TV, it again became evident that the very best publicity is reserved for those with quality management. Readers will recognize Jaworsky echoing the very same themes, which have run through our commentary since June 2004, in every feature from ISL mining to U.S. uranium assets, and from the recent Wyoming series to the widely “How to Choose a Uranium Stock.” Jaworsky picked Energy Metals (TSX: EMC), UR-Energy (TSX: URE) and Strathmore Minerals (TSX: STM; Other OTC: STHJF) as his top three choices.

What attracts the big time publicity is the name behind the company. Often it is not the Chief Executive. If one were to speak to Gene Ramos, Reuter’s energy reporter based in New York, the first question he will fire back at you is: “Who is this person?” Translation: What has he accomplished? Bart Jaworsky astutely focused on “quality of management.” That is a lesson investors should learn.

For example, this past week, Strathmore Minerals was fortunate to have a triple play in publicity. On Tuesday, Lawrence Roulston, who writes Resource Opportunities, recommended Strathmore on ROB TV. On Wednesday, Bill Murphy’s Midas Report recommended Strathmore. On Friday, Jaworsky featured Strathmore on ROB TV. Who’s doing their public relations? In reality, the media attraction stems from the quality of management. When Spencer Jakab of Dow Jones (and Barron’s) wants a good quote about uranium, he turns to David Miller, president of Strathmore. Miller was chief geologist for Cogema’s ISL operations in the United States. Again, who are you and what have you done?

In the case of Energy Metals, when it comes to ISL mining, the engineer in charge of developing their U.S. assets is Dennis Stover. His claim to fame was designing the Smith Ranch ISL facility now owned by Cameco’s Power Resources. A review search of the ISL literature will inevitably turn up Dennis Stover’s name. Stover has proven himself, built a respectable reputation and inevitably will attract media attention at some point.

Finding a Wyoming geological textbook that omits the name of William Boberg, chief executive of UR-Energy, is easier said than done. His papers and presentations through the late 1970s and 1980s helped define the extent of Wyoming uranium geology. With previous experience at Conoco and Kennecott, as a uranium geologist, Boberg’s endeavors to bring his company’s Lost Soldier property into full production will, at some point, attract strong media attention.

What brings the media to a company’s door is not the tout by a self-serving, self-absorbed and megalomaniac newsletter writer, but all of the attributes we featured in “How to Choose a Uranium Stock.” Quality management, great (and proven) properties, hidden value in the company, and loads of cash help simplify an investor’s decision. Jaworsky warned about Kazakhstan, an area we’ve avoided coverage on because of the political climate (ditto for Mongolia). Focusing on North America reduces risk when it comes to uranium exploration and development.

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James Finch contributes to StockInterview.com and other publications. His features on uranium stocks and the sector have been widely quoted across the world. His archived articles can be found exclusively on StockInterview.com at http://www.stockinterview.com James Finch welcomes feedback from you and can be contacted at jfinch@stockinterview.com

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