Insights From Listeners – Thu 9 Nov, 2017

LPG – “Good news” for uranium supply side

We have discussed the uranium sector a number of times on this show but over the past year uranium continues to be stuck at extreme low levels. With many reasons to believe that global demand will pick up it is turning into a market where everything takes longer then investors thought.

That is why the email that I received today from our friend LPG caught my eye. As the article linked at the bottom outline, Cameco is stopping its production in Canada and the uranium stocks are taking note. Finally some news that could spark a run in the sector and more importantly the stocks.

Thanks again for the email LPG!

Cameco (CCJ) – world’s largest uranium producer – announced today it’s halting production at its Canadian operations (article down below).

Sector uranium is literally on fire on the news (check tickers such as URA, UUUU, UEC, even CCJ – and I am not even mentioning the small names) while Uranium compound are still sold on a spot basis at multiyear lows (near $20/lb). I also own some very tiny explorers and near-term producers that I won’t mention here.,

What I think is a low-risk investment strategy is to buy shares in the producers mentioned above (I own all of them except URA) and hold the shares for the next 2-3 yrs (explorers are more risky).

Granted, the uranium market has taken longer than what I thought to bottom (courtesy of Japan’s reactors not being restarted as promptly as I thought), but news like these are, imho, very bullish for the sector.

Back in mid-2015, Barrick Gold (largest listed gold producer) took massive impairment on its gold portfolio. 6 months later, the gold miners sector bottomed and literally exploded in 2016.

Not sure if the same thing will happen w. uranium, but I think we’re in the same economic set-up (multi-year low for the metal/compound, hardly anyone making money at current price levels, and the largest producer winding down operations). Valuation are absurdly low too, and the uranium sector, market cap wise, is very tiny. VERY.

Best to all and all have a great week-end,

LPG

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Comments:
  1. On November 9, 2017 at 10:13 am,
    Excelsior says:

    Myy thoughts on this Cameco news were posted yesterday on the Chris T. editorial, but overall this supply destruction should be a net positive for the Uranium space.

    I thought some investors may like to pop into the Cameco room on ceo for ongoing thoughts from investors on this topic.

    https://ceo.ca/cco

  2. On November 9, 2017 at 10:16 am,
    Excelsior says:

    Investing News Network (Podcast): Curtis Moore, Energy Fuels (UUUU) Featured

    http://www.energyfuels.com/knowledge-center/investing-news-network-podcast-curtis-moore-energy-fuels-featured/

  3. On November 9, 2017 at 10:32 am,
    JohnK says:

    Let us not forget that those who claim to be Muslims and Quran followers also have no problem with men marrying 9 year old girls and consummating the marriage.
    https://www.jihadwatch.org/2017/08/iran-muslim-clerics-oppose-raising-girls-age-of-marriage-eligibility-from-nine

  4. On November 9, 2017 at 10:52 am,
    JohnK says:

    Those who do not question this are little more than associates.

  5. On November 9, 2017 at 11:49 am,
    JohnK says:

    On October 28, 2017 at 8:29 am,
    RICHARD/DOC says:
    JohnK; you’re very correct. A “literalist” as regards Islam cannot be a “moderate” just as a “literalist” Christian cannot be a moderate in their faith. Then all you are is a “religious” person and might as well be a secularist since your belief is “lukewarm” and very tenuous.

  6. On November 9, 2017 at 1:35 pm,
    JohnK says:

    Shameful lack of Morality in the Military.
    Child rape on U S Military Base in Afghanistan
    Remember this?
    http://www.foxnews.com/politics/2016/04/29/army-retains-decorated-green-beret-it-planned-to-kick-out-over-confronting-afghan-child-rapist.html

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