GREY:SXRZF - Post by User
Post by
goldishon Apr 02, 2009 3:30pm
239 Views
Post# 15891998
uranium spot price will rebound
uranium spot price will reboundURANIUM AND FERTILIZER STOCKS TOP PICKS
Investment bankers RBCCM see uranium and fertilizer stocks as their top picks for growth, but are not convinced on an industrial metals revival yet.
Author: Lawrence Williams
Posted: Thursday , 02 Apr 2009
RBCCM warns too about base metals feeling that investors should be underweight base metalsstocks as the commodities are in surplus, LME stockpiles remain at elevated levels and utilisation rates continue to decline. Similarly, RBCCM would also be underweight bulk commodities stocks; as they are deemed a mid-to-late cycle performer and the investment banker would like to see evidence of a global economic recovery before becoming more positive.
So where does RBCCM feel investors should put their money? Uranium stocks and fertilizer stocks are the top picks here. On uranium RBCCM says "After record spot prices in 2007 and a subsequent hard correction, RBC Capital Markets believes the uranium spot price will rebound in H2/09. Significant production cuts were announced in late 2008 and RBC Capital Markets believes the supply side of the equation remains at risk, while demand appears to remain in line with expectations."