Monday, November 8, 2010

Let's get some Uranium - Huge upside ahead

First let's thank China for its increased demand in uranium consumption. Utilities buy uranium largely through long-term contracts, cuurently paying about $10 a pound above the spot price. At about 20% of the overall market, the spot market is particularly volatile. In addition to U.S. dollar weakness, the recent runup has been helped by producers like Rio Tinto (RIO) and Cameco (CCJ), which have been buying in the spot market to meet commitments, and Kazakhstan, which says it won't hit its 2010 production target. China is the market's powerhouse. The Chinese now have about nine gigawatts of nuclear-generating capacity and, until last week, were expected to have 70 gigawatts by 2020. But Thursday, according to published reports, China boosted its goal for that year to 112 gigawatts. That would mean that the Chinese would need 64 million pounds by then, nearly 50% of the 132 million pounds that will be produced this year, based on methodology used by consulting firm McKinsey, which thinks that the real capacity goal is higher: 120 gigawatts.

"This is a commodity that, when it starts to move, it can get crazy," says Robert Mitchell, general partner of Portal Capital. Uranium is currently trading at $56/pound and is expected to reach $90 in the next 12 months. Uranium stocks are red hot now so better wait for a pull back and take positions. There is certainly a huge opportunity to make some decent money if you follow the industry and its trend.

Here are some stocks which have primary exposure in Uranium and trading at 52 week high - URRE, UEC, URZ, CCJ, BHP, RIO, SXRZF.PK

Disclaimer - I do not have any positions as of today, 11/08/2010 in the above mentioned stocks.

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!!!



    Good article supporting this. URRE also just signed a contract for exploration with Cameco in Texas.

  2. While they "trade by appointment" uranium futures are another place to look, if you know how to handle leverage.


Who is Mr.Incredible?

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Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!