I believe someone here already posted a thesis supporting uranium stock at this level so I’m only going to add one additional point to support why uranium related stocks are one of my heavy position in my portfolio for 2012.
Simply put, I believe the Middle East crisis will impact 2012 the way European crisis affected 2011 except the magnitude will be much larger. While oil price will shoot up, uranium will be seen as a long-term alternative to oil. Possibly with the crisis in the Middle East, consistent oil supply may become an issue in the long run; this prospect will, in my opinion, fuel the need for more nuclear power plants.
Hence, my loading up on uranium related stocks: CCJ (the King of uranium stock); URRE, URG, and USU.
This is not a recommendation to buy; just me making a note for myself…
If you enjoy the content at iBankCoin, please follow us on Twitter