RE:RE:What was yesterday's trading action all about?I believe this is a good example of just how tiny, the Uranium sector is looking at the big picture. Let us take yesterday as a good example.
A million shares of UEX is $170K in other words nothing, irrelevant, nada (except to us). Furthermore, the entire current 12 Billion dollar Uranium mining market is also tiny looking at the overall world economy of 70,000 Billion dollars - 12 into 70,000 is not even a rounding error.
Point is the deeper we get into this next U phase, the larger the potential return in my opinion. Global electricty is a must just like needing air and food and where does it come from ? Well some of it, abot 11 % comes from Nuclear Power Plants - we all know this but trust me, 98 % + of the General population do not have a clue - literally do not have a clue what charges their cell phones.
These plants need Uranium to run. Mining Uranium costs money. Mining Companies need to make a profit to mine Uranium. They do not at $ 32/LB - even Kazak all in do not make much at $ 32/lB - so they will not mine nor should they. And finally as we all know, does not matter what Uranium costs - it is needed to run the world Nuclear power plant fleet.
Even if Uranium cost $ 500/LB vs $ 32/LB - let us have some fun with numbers at a plant that consumes a million LBS of U per year.
$ 32,000,000 vs $ 500,000,000 - a difference of $ 468,000,000 in a 6 Billion dollar plant that either runs or shuts down if they cannot get the U. Believe they would pay it and also if 11 % of the global grid shuts down, we are all in very deep doodoo.
And if someday in the future, Uranium goes to $ 500/LB, let's just say ,then the global market would still be under $ 100 Billion dollars still not that big really. And remember the above 100 into 70,000 Billion is still well under 0.02 %.
Uranium at $ 500/LB, and this board will not be talking about $ 0.15 to $ 0.17 per UEX share. Nobody predicted 2007 and $ 137/LB - nobody. Stay the course but it is hard. Dollars not pennies, remember.
MM