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…
Good Hunting!
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Not to be confrontational here but I don’t see how uranium is a replacement for oil in any market and in any way. One is used in almost every product on earth and for fuel and the other is used in exclusively in power plants in an industry that takes 10+ years to even make small changes that is still reeling from a global nuclear catastrophe. I don’t think the two markets are connected.
You brought up a very good point. Technically, uranium is not a replacement for the oil market in the near term. It is the “perception” that it can in the long-run that fuel the rise in price.
The nuclear catastrophe in Japan, I believe, has settled down and all countries with nuclear power plants have learned some lessons and may even make plan to take precaution.
But then, my opinion is just my 2 cents. Am I making sense? Probably not. I’m simply making a note to myself as to why I’m heavily invested in uranium. I need some fundamental to support my position along with the chart formation.
As of now, I’m in harmony with my investment in uranium.
But your comment make lot of sense; and I’ll keep an eye on the chart even more diligently!
Thanks and good hunting!
Just had a WallStreetNeverSleepsII flash. Chuckle.