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--Analyst Actions: Dundee Capital Markets Says Ur-Energy, Uranerz Could Offer Big Returns Over a Short Time

A pair of uranium companies that are candidates for inclusion in two Russell indexes could offer a big return over a short period of time, based on an outlook from Dundee Capital Markets, the Financial Post reported.

Ur-Energy (URE.TO) last traded at $1.41 on the Toronto Stock Exchange, while Uranerz ( URZ ) was down 7 cents at $2.81.

In a note to investors, Dundee analyst David Talbot reportedly said that the two companies, Ur-Energy Inc. and Uranerz Energy Corp., were included on a preliminary additions list for the Russell Global Index and the Russell 3000 Index. Russell indices are widely used by investors for index funds, with roughly US$3.9 trillion in institutional assets benchmarked to them.

According to the Financial Post, Uranerz was previously included in the Russell 3000 index, before being dropped last year. The company was added to the index in 2009 and rallied 45% between the first preliminary addition announcement to the point when it was included, it said. Uranerz then lost 23% when it was removed last year, it added.

Talbot is reportedly recommending investors buy into both Uranerz and Ur-Energy before the final list is announced on June 24.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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