Uranium Spot Prices Continue To Soar

228 views

Approximate prices for the uranium spot market lifted another 5% from last week. We’re now well back into the $40’s.

This is what I have been waiting for, for years now. CCJ is still one of my larger holdings, and there is still time left in the year to have it be a big hit. But even if it doesn’t work out before 2014 comes to a close, 2015 will work fine too.

Japan set off the stampede. It ends gloriously.

Uranium Industry Is Healing

281 views

Most of my focus has been on the oil market lately, because when this kind of drop off built on this sparse level of evidence presents itself, you take it fully committed.

But a longstanding dark horse investment of mine has been the uranium industry. So confident in the resumption of this industry am I that every year since the Japan disaster, CCJ has been my pick for the stock of the year contest.

The sector has long been correcting and unloved. This comes from two sources.

The first source is fundamental to how uranium is bought and sold. The market volume is paper thin, and nuclear reactors remain well supplied with upwards of three years worth of fuel at all times. Unlike a coal plant, which takes delivery of fuel almost continuously throughout the year, nuclear power plants are tiny islands of isolation.

The second source is a lack of good news to build excitement in the uranium industry. Shares of uranium stocks have traded like deliveries of uranium – bidless.

Both aspects may be changing though. We are far enough out now from the Japan disaster that reactors are beginning to make adjustments to their supply agreements. As CCJ’s data has well supported, the long term supply agreements have not been prone to the massive drawdown that has plagued the uranium spot price.

Japan’s announcement that they are (finally) beginning the process of restarting reactors (after untold hardships in the face of stubbornness) is the critical breath of life missing from the equation. Nuclear stocks and uranium in particular can begin to get back on the minds of fickle fund managers. Investment can pick up in the sector.

Currently, I am showing uranium spot price in the mid to upper $30-40 range. This is a huge recovery from the high $20’s range that spot uranium was trading in just this spring.

If pricing can keep working upward, steadily, into the $40’s, I’d say we’d be getting close to a big and much needed pick me up.

Added to CCJ for $17.90

139 views

I made purchases of CCJ, taking the position to 20% of assets once more.

The terror of the crowd notwithstanding, the stars are aligning.

It is time for the days of CCJ, my child.

Added Back To CCJ – 5% of Assets

199 views

I brought my overall cash position to 40% from 45%, bringing CCJ back up to 15% of assets.

Uranium prices are still rebounding and Japan restarts are rumored to begin shortly. I am not missing out on this trade after owning it for so long.

40% is conservative enough.

Uranium Prices May Have Finally Bottomed

153 views

I know, I’m sorry for the tap out title on this piece. It is spineless and cowardly. But I’ve gotten my hopes up enough times now, just to watch uranium prices breach new lows, that I will not tag along again.

It does appear, based on the very thinly traded reporting I have access to, that pricing for uranium fuel has increased dramatically in the past few weeks from around $28 per pound, to around $32 per pound.

This is of course nowhere near the $50 level it was at just a few short years ago. However, steps are to be taken incrementally. I want to see this hold up, then wait and see some more.

CCJ remains my only uranium play; I made a short trade in UEC for a wash earlier this year and decided the time was not right for the small miners.

My earliest prediction following the Fukushima Daiichi meltdown was that, if a V shape recovery could not quickly follow the price deflation, then at or around the three year anniversary would mark the recovery in nuclear fuel investments.

So far this year, those hopes have not been met. But there is still time; a few months later is not much off, and I could live with a year or two even…provided the rewards are rich enough.

Uranium Spot Prices Continue To Soar

228 views

Approximate prices for the uranium spot market lifted another 5% from last week. We’re now well back into the $40’s.

This is what I have been waiting for, for years now. CCJ is still one of my larger holdings, and there is still time left in the year to have it be a big hit. But even if it doesn’t work out before 2014 comes to a close, 2015 will work fine too.

Japan set off the stampede. It ends gloriously.

Uranium Industry Is Healing

281 views

Most of my focus has been on the oil market lately, because when this kind of drop off built on this sparse level of evidence presents itself, you take it fully committed.

But a longstanding dark horse investment of mine has been the uranium industry. So confident in the resumption of this industry am I that every year since the Japan disaster, CCJ has been my pick for the stock of the year contest.

The sector has long been correcting and unloved. This comes from two sources.

The first source is fundamental to how uranium is bought and sold. The market volume is paper thin, and nuclear reactors remain well supplied with upwards of three years worth of fuel at all times. Unlike a coal plant, which takes delivery of fuel almost continuously throughout the year, nuclear power plants are tiny islands of isolation.

The second source is a lack of good news to build excitement in the uranium industry. Shares of uranium stocks have traded like deliveries of uranium – bidless.

Both aspects may be changing though. We are far enough out now from the Japan disaster that reactors are beginning to make adjustments to their supply agreements. As CCJ’s data has well supported, the long term supply agreements have not been prone to the massive drawdown that has plagued the uranium spot price.

Japan’s announcement that they are (finally) beginning the process of restarting reactors (after untold hardships in the face of stubbornness) is the critical breath of life missing from the equation. Nuclear stocks and uranium in particular can begin to get back on the minds of fickle fund managers. Investment can pick up in the sector.

Currently, I am showing uranium spot price in the mid to upper $30-40 range. This is a huge recovery from the high $20’s range that spot uranium was trading in just this spring.

If pricing can keep working upward, steadily, into the $40’s, I’d say we’d be getting close to a big and much needed pick me up.

Added To CCJ For $17.30

183 views

I upped my stake in CCJ, placing an additional 5% of my account in shares, for $17.30.

Added to CCJ for $17.90

139 views

I made purchases of CCJ, taking the position to 20% of assets once more.

The terror of the crowd notwithstanding, the stars are aligning.

It is time for the days of CCJ, my child.

Added Back To CCJ – 5% of Assets

199 views

I brought my overall cash position to 40% from 45%, bringing CCJ back up to 15% of assets.

Uranium prices are still rebounding and Japan restarts are rumored to begin shortly. I am not missing out on this trade after owning it for so long.

40% is conservative enough.

Uranium Prices May Have Finally Bottomed

153 views

I know, I’m sorry for the tap out title on this piece. It is spineless and cowardly. But I’ve gotten my hopes up enough times now, just to watch uranium prices breach new lows, that I will not tag along again.

It does appear, based on the very thinly traded reporting I have access to, that pricing for uranium fuel has increased dramatically in the past few weeks from around $28 per pound, to around $32 per pound.

This is of course nowhere near the $50 level it was at just a few short years ago. However, steps are to be taken incrementally. I want to see this hold up, then wait and see some more.

CCJ remains my only uranium play; I made a short trade in UEC for a wash earlier this year and decided the time was not right for the small miners.

My earliest prediction following the Fukushima Daiichi meltdown was that, if a V shape recovery could not quickly follow the price deflation, then at or around the three year anniversary would mark the recovery in nuclear fuel investments.

So far this year, those hopes have not been met. But there is still time; a few months later is not much off, and I could live with a year or two even…provided the rewards are rich enough.

Previous Posts by Mr. Cain Thaler
The March Of War
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