My stock screen pulled out an undiscovered gem and I want to share it with you. I screen for companies that are beaten down and I try to determine why they are down.  Some deserve to be and those I wouldn’t touch with the proverbial “ten-foot pole”.  Others are temporary victims of bad news, a bad quarter or waning investor interest.  THOSE companies  can come back and deliver great gains for my members….and, that is what I am looking for. I think I found another one for your radar list.

Today’s company is Titan Uranium, Incorporated (TUEFF.PK). My members had great success with my last penny stock uranium pick, URST.  I alerted my readers about URST at 21 cents and within three weeks it was trading at 42 cents (on its way to a high of 46 cents).  For those keeping score at home, that is over 100% gain.

TUEFF is not URST. I will not and cannot promise you that TUEFF will act the same way as URST.   It is a totally different company with different fact patterns, but Titan is compelling nonetheless. The company is a development-stage enterprise engaged solely in the exploration for uranium.

Titan has interests in both in the United States and Canadian uranium fields.  Their main field is the Athabasca Basin in Canada. It is known as the world’s  “number one uranium address”. The field accounts for over a 3rd of the global production.  Two other properties, Sand Hill Lake/Rook II and Thelon Basin projects appear very promising according to the company.

What is unique about Titan is that they have spread the risk around by enlisting some influential partners to fund exploration in several key uranium-producing fields in Canada.  Titan has added partners who buy a significant percentage of the expected output from a field by making a multi-year financing commitment to fund exploration.   These partners have committed over Cdn $22 MM to fund exploration projects through 2012.

The chart is telling me that the stock is beat down.  Clearly, the stochastics are indicating that TUEFF is oversold and the RSI is nearing the oversold level too.  The MACD is neutral at this point, but could turn quickly (in either direction…but, I think it will be up).  The stock has clearly tanked, and has pushed past support at 27 cents.  This stock should be watched for when it turns.

I believe that it will turn.  The company is very well run, well capitalized and is exploring for a very valuable metal: Uranium.  The stock is not flashy or sexy, but could return some great gains for traders.

If you are doing your own research on TUEFF, don’t bother going to pinksheets.com or Yahoo! Finance.  They are on the Toronto exchange under the ticker TUE.V (see above chart).  All of the information you will need for your DD is found on their website.  Click here for the link to their site.

Titan is an interesting play.  I called the company and talked to a highly placed company official.  Getting information from him was like pulling teeth.  In fact, I didn’t get anything out of him.  They are very tight-lipped about their company, but clearly have a goal and a plan.  I believe that traders should look at the short-term trade possibilities for TUEFF, but don’t neglect the long-term either.

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