CXZ - Ready to take off!

CXZ (Crosshair Exploration & Mining Corp) - We initiated coverage on CXZ when it was trading at $2 on 12/23, click here. We introduced it as a Uranium stock but after doing some research it turned out to be a rare metal company, which mines Valadium, a rare metal predominantly used as a strengthening additive in steel and some forms of iron. Roughly 85% of vanadium is used in the high performance steel industry. Another 10% is used as an essential alloying element for titanium. Vanadium has become indispensable for many industrial and domestic products and processes. Other uses of vanadium include as a catalyst in the manufacturing of sulfuric acid as well as in ceramics and glass manufacturing. Read more here.

Rapidly rising demand
Demand for vanadium is expected to grow at a compound annual rate of 7.8% through to 2015, fuelled by continuing strong world demand and tightening global supply. There are several factors that will continue to influence the demand for vanadium including:

1. China, which currently consumes almost 40% of world steel production, is increasing its demand for steel that contains vanadium
2. India’s steel production will almost double from 65 million tonnes to 124 million tonnes a year by 2011
3. World markets estimate total global infrastructure spending over the next 20 years will reach $35-trillion – with many of those projects requiring vanadium

With today's news that China is going to reduce its rare earth exports by 10% in 2011 is going to boost up the demand for rare earth companies like CXZ, SHZ, REE, MCP and others, click here. CXZ is going to be the hottest stock in the future because it is already in the process of exploring Uranium, Vanadium, Gold, and precious metals, which can be taken as an inflation protected investment and or green energy investment.

Prediction - Compared it its peers (nuclear explorers) like URG and URRE, CXZ has as smaller float with high chances of crossing $4 soon. It even has the potential to hit $10 long term (provided there are no secondary offerings down the line)

Disclosure - Long SHZ, URG, and CXZ

A general Caution and Advise --As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!