RE:Quakes Moves The Market
If RBC is correct in its analysis that social media (aka QUAKES) is responsible for people thinking there is a bull market in uranium, then investors should be concerned because it means that smoke and mirrors has played a roll in creating iinterest in uranium. The impression that "all the stars are aligned" has been repeated over and over.
Just have a look at how many tweets get RETWEETED by Quakes. Tons of them. Repetition is used to hammer home the idea that uranium is a hot commodity.
A lot of effort has gone into building this uranium bull market scenario. But just take a look at how the stock market is viewing it. The spot market dribbles around with nickle and dime moves. The futures market is basically frozen. Cameco runs forward a bit and then backs right up. Extremely volatile. Not very encouraging.
The stock market does not see the same bull market that Quakes advertises. The market knows that US utilities have not been gobbling up uranium via new long term contracts. Quakes slyly avoids mentioning that issue.
The RBC report had a very conspicuous comment. Here it is:"The uranium market might be “in a slight deficit through the mid-2020s, as idled supply comes online to meet steadily growing demand.”
The key words are "might be in a slight deficit". Might is a useless word.
We are iin month 7 of 2021 and the truth hurts. You have to ask "where is the bull in uranium?"