Megatons to Megawhat?So let me guess;
1) You were sucked into the Uranium sector after Fukushima, “knowing” things would bounce back. After all, all the experts were saying so!
2) Next, “THE END OF MEGATONS TO MEGAWATTS!!!” The experts told us that too! The spot price has gone down by 16% since then… the spot price!
3) Next served up by the experts; “the spot price is below the current marginal cost of production. Uh, yeah, for those with horribly low quality uranium mines.
4) Finally, you looked at the spot price slide only to finally look up the history on the spot price and see that it say nicely at $10 for years, and not that long ago either!
5) Now you hate this post because you’re holding the bag.
So, what’s next (IMO)?
1) The micro caps ALL get wiped out unless one is lucky enough to find a great resource.
2) The juniors are slaughtered, unless Japan turns on a SIGNIFICANT number of reactors at the same time. Even if they do, the massively depressed spot price at that time would only jump up to what is well below current prices. Also, if Putin turns off the taps, that could help the Uranium stocks.
3) A very select few will weather the storm.
And that’s all if there isn’t another Fukushima (which we all pray does not happen again). But, it’s not all doom and gloom.
The price will come back eventually, maybe another 5-6 years. Discredit the post before you try to discredit the poster. The only one’s trying to discredit me are the one’s that are under water with the shares they hold in U stocks. Don’t worry, I’m holding the bag on a micro cap U stock. Oh well.