I don't make a habit of looking for speculative low-priced names. I do however like to look for stories on page 12 and avoid the ones on page 1. One Real Money reader suggested I take a look at this page 12 name -- Fission Uranium Corp. (FCUUF). Here's what I think.
"Nuclear" became a front page story for all the wrong reasons in the past few years, and most investors still ignore or shun this energy source. The dirty truth is that the world cannot meet its clean energy needs without uranium -- wind and solar alone cannot do it. Eventually, more countries will reconsider nuclear, assuming the waste issue can be solved.
In this daily chart of FCUUF, above, we can see a December low and a retest in January of this year. Prices have slowly ground higher. The On-Balance-Volume (OBV) line has been moving up from a December low. Prices are above the flat 50-day and 200-day moving average lines.
In this three-year weekly chart of FCUUF, above, we can see that prices are above the 40-week moving average line. The weekly OBV line is up from its November low. The weekly Moving Average Convergence Divergence (MACD) oscillator has moved up to the zero line for an outright go long signal.
Strategy: The easiest thing to do is to take a pass on this speculative idea. Put it in the desk drawer and look at it a year from now. The second thing is to do more research on the name and the industry. Only, if you are satisfied that this might represent a viable long-term idea, you should still put it in the drawer.
You can ask the question whether I am buying this for my own account -- the answer is no. You can say I have no confidence in my own recommendations, but really, I don't like hate mail. I don't want to hear from a subscriber that they bought a big position in this speculative name and took a big loss. Let's consider this a learning experience.