Finally, I found a bargain.It is Uranium One.To be honest, I wasn't suprised that one of us already own this stock.

Cocktail
We have  reserves,mining costs and selling price of the commodity (uranium).

I think two variables are really important: mining costs and debt that company has.It is no suprise that company that has difficult mining terrain will look cheap,but in closer look at their mining costs it will be expensive.

My other mistakes were companies that I call freaks.Freaks are psychos who ,,smell,, money in the air and are borrowing money ,making aquisitions and placing risky bets.If market gets nasty they go under water.

Uranium Oe avoided debt in the past and has one of the lowest production costs,unlike other companies you can tell quite easily what is their fully diluted number of shares and what will happen if the price of uranium will go steeply down.(most contracts have floor price protection $45 per lb,but no ceiling)

MACRO facts:
1.World nuclear electricity production compound annual growth rate is 9.5% since 1971.
2.Currently there are 439 reactors with a capacity of 372 GWe of electricity.
3.16% of global electricity is generated by nuclear reactors.
4.World-wide over 338 reactors are currently under constrution,planned or proposed and nearly 75% of these are 
   located in only seven countries. (from these 338 china has 120).
5.Despite increasing uranium prices in 2006,mine production was less than in 2005
6.In 2006 supply was 39 400 tonnes U or 102.7 million pounds U3O8.Consumption was 70 000 tonnes U. 
New Supply-Where will it come from?  


MICRO  facts
Fully diluted number of shares-500 mill.
Market capitalisation- 6000 mill.
Enterprise value-5800 mill.

Proven reserves-4 100 000 lbs
Probable reserves-44 627 000 lbs
Measured reserves-10 689 000 lbs
Indicated reserves-101 867 000 lbs
Inferred reserves-283 638 000 lbs

Price of uranium-$80/pound
Cash cost (Us$ per lb)-14.5$
Cash flow- 65.5 per lb


Production (uranium lbs)
Production in 2007-2 500 000
Production in 2008-7 400 000
Production in 2009-10 800 000
Production in 2010-14 900 000
Production in 2011-17 800 000
Production in 2012-24 700 000

(Price of uranium= $80,cash costs $14.5,cash flow 65.5$)

Cash flow
Production in 2007-2 500 000*65.5$=163.75 mill.
Production in 2008-7 400 000*65.5$=484.7 mill.
Production in 2009-10 800 000*65.5$=707.4mill.
Production in 2010-14 900 000*65.5$=975.95mill.
Production in 2011-17 800 000*65.5$=1165.9mill.
Production in 2012-24 700 000*65.5$=1617.85mill.

Discounted cash flow
2007-148.8
2008-400.5
2009-531.4
2010-666.58
2011-723.93
2012-913.26

Total discounted cash flow =3384.47 + value of the company after that 9130.26= 12514 mill.

Now value of the company is 5800 mill that's 54% discount from the fair price.I think that the value of the company is much higher roughly something around 30 000 mill.(price of uranium will double at least).It gives you 60$/share.

PS:I forgot to say that the biggest jump 300% in their production will be next year-7.4 mill.lbs from 2.5 mill lbs !!!!!