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Show J) Make a Million? Not Likely In Today's Uranium Markets Most people believe there are two ways to make money In the uranium Dullness by finding the yellowish mineral In large amount, or by Investing in uranium stocks. More than likely (and this will take the wind out of a lot of sails) the get-rlch-qulck schemer will find the pot of gold he U seeking ot the end of neither of these rainbows. He'd better pack up his little satchel of investable money and look elsewhere. In the first place, of the more than 600 producing uranium mines on the Colorado Plateau less than ton of them are big money-makers. The remainder are putting from $50 to $75 per day into their owner's pocket before expenses, that Is. So If our man with the $1,000 he wants to turn into $1,000,000 quickly expects to be another Steen or Cooper or Tick, he'd be wise to alter his plans somewhat. So he heeds the advice, lie decides he can make money fast in uranium stocks. So he starts an examination of the long list of uranium stocks on the market boards. An then he seeks out a reputable broker. The first thing he learns is that he is not going to make a million dollars overnight, despite his dreams of quick fortune. The broker is careful to explain that not all stocks listed are good, that some have been floated by uranium mining companies that Just barely come within the rules and regulations of the Securities and Exchange Commissions. For example, there are some operators who lease land near a good producing mine and then float stock issues on the basis of future exploration. When the stock Is actually sold, there may be absolutely no indication that uranium ore is on the claim. Or, they may have obtained good scintillator or geiger counter readings but these readings Indicate only that ore Is present, not the quantity or quality. Too, the operators may deduct salaries and costs of selling the stock from the Invested money, which means that of perhaps $300.-000 received from Investors, only $100,000, or even less, will wind up In actual exploration and production. One other Important little question is answered by the broker our friend the capitalist-to-be has sought out. The number of uranium stocks on the market today that are not in the penny share group can be counted on one hand. And whoever beard of making a fortune from penny share Investments, unless a specific issue is controlled by a professional manipulator who, by his own efforts tq make a million quickly, will have a number of investors riding on his kite, so to speak. Before investing In uranium stocks with a hope of quick money, our Investor should consider the cases of Steen and Pick and a couple of other successful uranium mining men on the Plateau. These men found their ore deposits by extensive exploration conducted by themselves, filed their claims, and then started production of ore and tale to the Atomic Energy Commission without using any money other than what they themselves could eke out of the ground which later brought them wealth. So If a prospector or uranium mining company sells stocks on the market it is a pretty sure bet that the company Is not yet producing ore. If .ore is in production, there is little chance the company will need outside financing. So it Is an almost sure bet that if the stock is on the market, the company Is not producing ore but Is merely exploring for ore on land leased for that purpose. ONE OF THE MOST rOPU western Colorado Is at Sweetwater Lake in Eagle county, affording good fishing, Invigorating cool air and plenty of Colorado sunshine-Fishermen find the lake, above Dotsero on the Colorado River, a paradise. But of course there are exceptions to the rule. So the stock may have been issued by a company with property already in production but costs have not yet been trimmed to assure maximum return on Investments. The company, eager to come Into possession of more and more producing mines, wants to do It without touching capital set aside for operation of the present operating mine, and floats a stock issue to obtain fresh capital. So we're right back where we started. Any new exploration Is a gamble. Therefore money of the investors is entered into a gamble and it is a gamble whether any profit will be made from the original investment, or whether or not even the invested capital can ever be returned to the investor. Our man with a $1,000 still hasn't run across the strictly phoney operator who operates outside the SEC regulations, the sly one who avers the investor will make huge profits overnight, or the salesman who tries to rush him into buying stocks because "they're about all sold nowl", the claims that no uranium shares had ever shown a loss tlots of them have), that the stock was Just about to go up to a dollar (only one or two have), and the talesman who hesitates to produce the offering circular. But if he Is extremely anxious to Ss m SK FAREWELL, PLATEAU, Is signified by President Elsenhowec, in this picture, taken as he boarded his plane In Grand Junction, Colo., in September, after a visit to the area "to learn" about the Colorado Plateau. To add to bis knowledge of the area, a specially bound copy of this Energy Edition will be presented to the" President by Colorado's Senior Republican Sen-ator Eugene D. Mlllikln. get rid of hts money, the salesman will seek him out and relieve him of it So perhaps the best advice concerning get-rich-quick schemers seeking fortunes in uranium would be to get a Job at a Janitor ot perhaps a store clerk somewhere and be satisfied with a weekly wage. At least he then will hav some return on bit investment Of his own labor. |