How to Play the Beaten-Down Uranium Stock Sector and Beat the Market
No question about it, uranium stocks are a deep-discount bargain today.
But…which one makes the best buy?
Leading uranium analysts can agree on one uranium stock to lead the way.Dear Intelligent Energy Investor, The silver lining from the recent tragic events in Japan is the remarkable opportunity today in uranium stocks. Ten days after the quake, legendary investor Rick Rule stated publicly that uranium stocks today are “one of the speculative opportunities of the decade!” But how can you tell if he’s right? Take the price of uranium itself. It was $66.50/lb prior to the quake on March 11. It fell to $50/lb over the ensuing week, and has nearly recovered completely already. Importantly, there’s no viable alternative and virtually all nuclear plants globally are operating, and there is guaranteed growth with the some +60 plants under construction. Demand far exceeds supply today and is projected to far exceed supply in future years. Which stock should you invest in to capitalize on the rising demand for uranium? Four qualified analysts -- along with experts from Forbes magazine, BusinessWeek, Agora Financial, TheStreet.com, Casey Research, and many more -- all agree that this one uranium stock could well bring very major returns for the company's investors as the company capitalizes on its successful business strategy and transitions from production start-up phase to high-growth phase. We would like to send you a respected newsletter editor’s analysis of this particular uranium stock that looks to have an exceptional future. This company has plenty of cash, a proven technical staff and excellent advanced projects, all in the United States. |
"Last week when uranium stocks got battered by the events in Japan, we saw that as a buying opportunity. We have been investing in a number of companies, most of which have already been in our portfolio. We think that they offer a very good buy because we see higher uranium prices ahead. Uranium prices have already gone from $50.00 last week to $60.00 this week. This Company is one that we like a lot." "This company has all the pieces in place." |
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Uranium – A Sector Powering Ahead
Prior to the tragic earthquake and tsunami in Japan the factors pushing uranium prices higher included the 443 reactors in operation worldwide and the 62 under construction. Today there are 425 nuclear reactors safety operating and the 62 reactors are still under construction.
In 2010, about 180 million pounds of uranium was consumed globally. However, only 130 million lbs was produced by uranium mines. This means that only 2/3 of uranium demand is being met by mine supply. The balance is made up for by secondary supplies like the US-Russian HEU Agreement. This agreement, which expires in 2013, supplies 13% of world's or 45% of U.S. annual uranium needs! This agreement still expires in 2013, while uranium consumption is expected to reach 230 MM lb per year by 2020.
There's simply not enough uranium coming from the world's mines right now to supply the current power plants across the world, let alone the next 62 under construction, and the further hundreds planned and proposed.
Uranium stock prices are down and this presents a special investment opportunity.
As supply continues to be constrained and demand for uranium rises, the value of select uranium stocks, such as this emerging uranium producer, will also rise.
We would like to send you a respected newsletter editor’s analysis of a particular uranium stock that looks to have an exceptional future. This company has plenty of cash, excellent technical staff and excellent advanced projects, all in the United States.
And this analyst is by no means the only one from an expert recommending this company. Some others include Haywood Securities, CIBC World Markets, and Dundee. In terms of uranium stock analysis, this is as good as it gets!
HERE'S WHAT LEADING ANALYSTS AND PUBLICATIONS ARE SAYING ABOUT THIS COMPANY: |
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"This is one Company that has already demonstrated it has the legs for truly large potential gains. This Company has a strong CEO, Leading Technical staff, good projects, and the broad market appeal to make it a real contender for a much bigger payoff." Casey Research, February 2010 |
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"This Company's decreasing risk profile and low operating costs should make it attractive to those looking for an investment in a new uranium producer in a safe jurisdiction. American utilities seem as though they may be willing to pay a premium for U3O8 deliveries to help support the US uranium mining industry - US production was under four million pounds U3O8 last year while American utility demand was over 50 million pounds." |
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"This is one of my favorite companies in the domestic uranium space. In the United States, nuclear power accounts for 20% of generated electricity…We produce only four million pounds of uranium a year in the United States, or about 7% of our annual domestic use of 55 million pounds...We desperately need a viable domestic uranium industry." |
