<Now that the price of oil is starting to subside>
It won't go as far as people think, even with Saudi discounting their heavy crude faster than a GM salesman with a lot full of 2004 Silverados.
The refiners don't want to invest. Would you, when every morning you hear about refineries on the target list for terrorist hits. Funny thing is the increase in tourist activity at the front gate with all those Middle Eastern types videotaping the facility.
What, the CFO asks, are we now listed in Al Jazeera's guide to easily accessible infrastructure in the US with five stars?
I certainly recognize this negative attitude towards CAPEX spending can affect all industries-but primarily in the US. The target.
Once oil stabilizes at a price higher than what analysts would want to admit-since they're too busy trying to make up for past mistakes pushing tech stocks and the big investment banks don't have much breadth or depth when it comes to energy anyways-it may be time to revalue oil companies. I think they may weaken a bit before then.
Over that period of time, Yukos and other stressed parts of the oil sector will need more than heavy alternating doses of Ritalin and Prozac to cure them of financial bipolar disorder.
In the meantime, I out together a little portfolio of uranium plays (with helps from others on SI much more knowledgeable about these things than I)
Now that Sweden has dammed all its rivers, leaving them with less fish for their morning pickled fish roll-ups, they are now looking at rolling out nuclear.
Lets put some lipstick on this pig:
nuclear power
(Ok, maybe it is still a pig, and will never have the emotional impact of owning Apple or Google, but there will always be those investments you have that aren't discussed when your green friends come for dinner, but it will be a large part of our energy supply in the future, pebble technology and all).
Since OZ is the #1 in uranium resources but Canada is #1 in production (#2 in resources), to my holding of
CCO.TO
I added
PSM.TO (CEO is ex-Cameco)
and then
LAM.V (Vancouver play with land in Oz, CEO is ex-Placer)
DEN.TO (acquiring mucho uranium land at cheapo prices)
STM.V (also acquiring cheap properties, favorite of Dines, funding from Sprott, someone from SSRI on Board)
UEX.TO (favorite of Dines, high quality deposits)
JNN.V (ex-Cameco CEO, rich deposit discovered, lots of land)
SXR.TO (desposits in Athabasca, Oz)
IUC.TO (quality deposits)
ERA.AX (Auzzie play)
I skipped:
USU (high leverage and too military, I thought)
GRS.TO (mainly gold and silver)
WMC (purity issue)
Considering:
UVN.V (good results from NWT drilling)
HBE.V (already on the move and haven't started drilling yet!)
Please let me know if there are others I can look at!
I believe Dines is right.
theaureport.com
There will be panic buying in uranium sometime in the next few years once the lights go on. Uranium, now $19/lb, is up from $10 last year and could go to $100 over the next few years on Indian and Chinese demand alone. There is only so much, and there are far fewer companies in this industry than in oil, NG, coal, biomass. There is no uranium index for benchmarking and certainly no uranium ETF. Have you ever seen the spot price quoted on TV? You can acquire several positions and pretty much own a balanced position on this market. Of course, there are also the service companies, but I generally favor the resource-owners.
Most of these companies are doing heavy financing now.
The day of my purchase (today) of JNN.V someone on Stockhouse wrote:
"The Americans are coming"
Yes, indeed!
Perhaps I am wrong. Maybe I am late to the party. I don't think so.
I think I will sell when the uranium price is posted regularly on Bloomberg.
PS. I still love my CanRoys |
