RE:RE:Need to keep SP above 15 cents at open on Tuesday
" Quake " .... A lot of " if's " in your post. When it comes right down to it you will probably end up making a lot more money by " shorting " rather than buying.
The way the spot price of uranium is starting to break down to levels not seen for quite a few years and no support in sight then the future doesn't look very promising for uranium stocks..
Check out the following article..... also Cameco obviously figures that the price isn't going anywhere ( except possibly downwards ) for a long time.
The uranium market had a lot going for it at the start of 2014:
The prospect of a Japanese nuclear reactor restart.
The end of the Russia-US megatons to megawatts program last August, eliminating a huge source of supply.
China's accelerated plan to approve six to eight plants a year through 2020; part of its war on pollution.
The possibility of a rethink in Germany about phasing out nuclear (coal is the only viable alternative and Putin's gas is becoming dearer).
As the stars aligned for a pickup in global uranium demand so did investors for uranium stocks.
But the rapid run-up in uranium shares – especially developers – didn't turn out to be a leading indicator.
The spot price continued to slide going below $30 a pound to levels last seen in 2005. That dragged the long term price, where most uranium business is conducted, down to $45, a six year low.
Uranium stocks have now come down to earth as this chart from Haywood Securities show.
The independent investment dealer with $5 billion under management says now that the spot price appears to have found something of a floor, the sell-off may begin to slow down.
But the Vancouver-based firm cautions that the shares of producers and developers "remain at or above their indexed price point of 12 months ago, when spot uranium was $40.70 U3O8, a 40% premium to current spot".
There may be more pain ahead.