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Uranium Spot price now $75/lb
UXC.com, one of only two places to get the updated uranium price, should publicly report tomorrow (Tuesday) that uranium has gained $3 to $75. That would break a two month stretch of no change in the price. The price leaped forward nearly $20 in the fall, as a result of the rock flood at Cameco’s cigar lake mine.
While the fundamentals for this small energy industry remain super bullish, it is one of the most difficult investments to play. This is especially true if you do not have a Canadian or Australian brokerage account. (Most uranium companies are Canadian or Australian). You can buy foreign stocks, however it usually takes a phone call to a broker and there is always the liquidity risk. Furthermore, it is becoming increasingly difficult to know which uranium stocks to buy. With gold and silver an investor can simply buy a sector mutual fund and sit back. The uranium sector is so small that there is not an ETF or a uranium mutual fund. As we move further into the bull market I’d expect one to come about. Finally, the stocks in the sector tend to move in separate small groups, rather than a school of fish, which is something we see with most commodities and most investments in general.
Looking at my quote screen, I see Strathmore and Powertech up very nicely, along with Uranerz and Urasia, but most of the sector is either down or relatively unchanged. Not to mention, there are new companies springing up left and right, which makes it increasingly difficult to track the entire sector. Quickly though, the stocks that look good technically (very short term) are STM.v, UUU.v, DML.to, FRG, EMC.to/EMU among others.
Here is a chart of a uranium stock that could be ready for liftoff. Will keep an eye on this one….
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