RE:RE:An interesting read for the macros analysts of the sectorPlumena Plumena my card counting half glass empty friend. Had I posted the article on the
CCO/CCJ board I would have been in full agreement with you.
This means more competition for Cameco and all the other North American U producers who sell their product..Thats the first and bad part of the equation if you are invested in those companies.
However, the good part of this for the explorers is our Kazak friends are now taking their sector sophistication to the next level. Kind of OPECesque. Rather than influencing the spot price by supply means only. They can now influence it through demand.
Our friends at Cameco can barely pay their own divy never mind be a serious buyer on the spot market. Howvever, the Kazaks now become the gorilla in the room that can compete in a very small illiquid market controlled by an oligopoly of utilities. Rather than waiting for them to buy, while they drive the stock price down on EXTREMELY low volumes, out Kazak freinds can drive it higher on extremely low volume creating a demand. Meanwhile, they have all the infratructure to warehouse, etc. And they do not have the same interests as the Utilities.
Its just another tool in their bag...coming soon