Uranium sector in a big breakout, from juniors to majors; explorers to processor; from Australia to US to Canada.
Uranium sector had an enduring multi-year, multi-bagger run-up till May, 2007 when a prolonged pullback ensued.
The last 3 weeks, the sector has been showing signs of a bottoming out and the last several days show a big breakout.
Madharry has mentioned STM.V several times, a junior that is a favorite on the uranium thread. For a list of other companies, large and small, as well as a view of the technicals, check out Merv's uranium blog
techuranium.blogspot.com
The fundamental story on uranium is encouraging:
439 nuclear reactors now operating globally in 41 countries producing 16% of world's electricity; 34 more reactors being built; 93 on order or planned; 222 proposed.
According to one research report (Don't have link, just my notes)China is moving faster than planned on nuclear reactor development.
Consumption of enriched uranium is outstripping production, with the shortfall coming from nuclear warhead decommissioning.
Environmentalists starting to embrace nuclear energy as a lesser evil than fossil fuels.
Risks include the NIMBY problem in US; very slow permitting process in democratic countries. More uranium production coming online in a few years. Nuclear reactors VERY expensive to build. And, of course, nuclear waste.
Caveat: I think I mentioned uranium here last year on a false breakout, just before the long correction ;> |
