Matthew Smith of TheInvestar.com reported, “I think that a correction may be underway in the uranium sector right now as the index tried and failed two times to break through the 325 level and hold.” Smith explained, “A correction is due, and it seems that many of the stocks with Australian exposure may at this time be overbought on the speculation of the vote on the country’s ‘Three Mines Policy.’”

We asked about Peter Farmer’s comments on the day before the company announced Denison Mines would be trading on the American Stock Exchange. Smith speculated, “I believe they indicate he is simply trying to talk down prices.” Smith pointed out the Denison chief executive was referring to “properties in the early development stage.”

Smith added that oil executives have been making these statements since the uranium price was in the $15/pound range all the way up. Earlier this week, Exelon Corp’s Jim Malone had voiced similar concerns the uranium price was unsustainable in a guest commentary for Fuel Cycle Week magazine. Malone also wondered in his editorial whether speculators were intentionally driving the uranium price higher to bolster the value of uranium mining stocks. Both appear to question the speculative value of the hundreds of uranium juniors which have jumped on the bandwagon over the past year. These sentiments agree with the conclusion of Yellowcake Mining director Dr. Robert Rich we found in a previously published interview.

Smith explained, “It is simply the conservative nature of the executives not to let expectations get out of hand.” These are sentiments expressed over the past few months by Uranium One’s Neal Froneman and Paladin Resources’ John Borshoff. As a market watcher, but not a registered investment advisor, Smith counseled, “When markets begin to look as though they may be overbought, it is best to go to those companies with good valuations.”

Smith’s sources told him, “We are hearing rumblings throughout the industry that Areva and the Japanese are beginning to get very aggressive in trying to form joint ventures on projects with actual deposits.” He concluded, “This should help propel those near-term producers over the summer if any new deals are announced.” Smith told StockInterview, “One of the major keys of the industry seems to be trying to figure out what these deposits are actually worth in today’s dollars.”

Smith’s top Australian uranium mining favorites include PepinNini Minerals and Berkeley Resources. He said of Berkeley, “They have great deposits in Europe, and Areva is supporting their efforts there.” Smith is betting on the Spanish government lifting the state restrictions on the uranium resources. In a similar situation is Mawson Resources, which Smith also favors and is also awaiting the lifting of Spain’s state mineral reserves restriction.

He also favors Strathmore Minerals and UR-Energy because of their U.S. uranium holdings and ‘top-notch technical teams.’ Smith said, “Both companies are presenting investors with a great buying opportunity and present good valuations relative to their peers. Smith looks to UR-Energy as a buyout candidate and to Strathmore Minerals because of its possible joint venture with a major international company. Smith disclosed to StockInterview that he has invested in the above companies.