The Ongoing Uranium Story: Profit Opportunities Continue
Just two weeks ago, in the October 25 edition of The Daily Reckoning, we offered a few kind words for the investment potential of uranium. “Nuclear energy is enjoying a global renaissance,” we remarked, “one that will produce numerous profit opportunities for forward-looking investors.”
As it turns out, forward-looking investors did not have to look very far forward to seize said profit opportunities. Byron King, editor of Outstanding Investments, identified three specific “uranium plays” in that edition of The Daily Reckoning: Cameco (NYSE:CCJ), and Denison Mines (AMEX:DNN), as well as direct investments in uranium via Uranium Participation Corp. (TSX:U). These stocks have jumped 20%, 31% and 13% respectively during the two weeks since.
So what gives? What’s lighting a fire under the uranium price. We posed that question yesterday to a handful of knowledgeable investors. Chris Mayer, editor of Capital & Crisis was the first to respond:
“It’s nothing more than what we have already been talking about: the uranium price was so low it was not supporting new investment and we’ve got lots of demand on tap. Prices had to rise! Plus, there have been some production shortfalls at big mines.”
Chris is still bullish on uranium…and so are we…
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