|
Page 1 of 21 I recently attended a lunch on Uranium. It was interesting to see the crowded room and the number of interested parties, as well as the overall level of knowledge. A few years ago, the room would have been very sparsely populated and no one would have even cared. Even at a recent family gathering, uranium crept into the conversation about where to invest. The only thing left is for a taxi driver to bring it up with me. But back to the facts.The outlook for Uranium and its supply and demand factors was discussed at length and was very interesting. The CEO of the world’s 2nd largest Uranium company (by market cap) declared the current price of uranium unsustainable. This is coming from someone who is in the business. Looking at the chart below, one can see the recent rise from $10/lb to close to $100. It is now around $140. Most of the transactions are transacted at $40-$50/lb. So why is the metal trading at $140 – speculators was the explanation given at the recent presentation. Uranium is a market very easily manipulated. There are few players and a tiny amount of volume can easily move prices. That is what has been happening. There are clear supply/demand imbalances as well. There is a shortage of Uranium after 20 years of underinvestment from the last time Uranium peaked in the early 1980’s. 
There are uranium stocks listed in the market that are valued at $125 - $350 per pound of uranium. Some of these companies will never produce a single pound but investors have rushed to give them gobs of cash which they are furiously deploying to get drill results. I spoke to an analyst today who talked about how we are currently at a point when companies have to firm up production so that they can take advantage of the high Uranium prices with a lock in. Without the reserves or production, they cannot take advantage of current prices and may lose the fleeting opportunity. What did the CEO say when asked about the valuation of juniors? He said that they are trading at “Stupid valuations.” It isn’t often that one gets such a good piece of information from someone in the business. Stupid valuations, unsustainable prices, speculation …. Stocks can only be headed in one direction. Of course, there is consolidation in the industry driven by the big players: Areva, desperate for supply and SXR Uranium One in an asset building mode. Cameco has not yet made a play and may at some point so there could be more takeovers. Watching recently the daily stock program on TV I noted just how many callers were asking about their uranium stocks. Perhaps ownership of Uranium stocks has become as common on the earth as the metal itself.* We like only one uranium stock and are short many of the smaller ones. It’s not like this hasn’t happened before several times. *Uranium is the most commonly occurring substance on earth
V5svNx <a href="http://cryfvplvimzi.com/">cryfvplvimzi</a>, [url=http://oveddrdpmodu.com/]oveddrdpmodu[/url], [link=http://ljjapbqxgtqt.com/]ljjapbqxgtqt[/link], http://krnnociitscz.com/ V5svNx <a href="http://cryfvplvimzi.com/">cryfvplvimzi</a>, [url=http://oveddrdpmodu.com/]oveddrdpmodu[/url], [link=http://ljjapbqxgtqt.com/]ljjapbqxgtqt[/link], http://krnnociitscz.com/ life insurance 980 car insurance 963 health insurance quotes >:-)) auto insurance =-DDD xanax lmtje prednisone 7321 buy doxycycline :-[[ tramadol =DD valium without prescription 600 tramadol bhmcg retin ucc propecia 7498 cialis >:-OOO tramadol hci 6590 buy tramadol us pharmacies 03171 350 350 carisoprodol carisoprodol mgmail333com :-(
|
