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Gold/Mining/Energy : Uranium Stocks
URNM 55.98-1.1%Dec 26 4:00 PM EST

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To: AuBug who wrote (10345)4/13/2007 6:32:28 PM
From: lowerSharpnose  Read Replies (2) of 30242
 
DJ...

The bizarre thing about this statement that "...already nearly a 40% shortfall in production from what is being consumed..." is we have yet to see a single nuclear reactor shut down for lack of fuel. Reminds me of silver, demand has aledgedly exceeded supply for decades yet we have no problem buying silver.

Stockpiles are at historically low levels. They have been depleted during this supply squeeze. Only the down-blending of ex-Russsian warheads has kept things in check.

Utility companies have been delaying purchases because prices were so high. This has reduced demand, but not consumption. The stockpiles, which act as a necessary buffer, have done their job. Purchases can only be deferred so long.

Sure the U business is cyclical. The question is how high will the peak be and how low the next trough?

An honest question : Why do you hold U stocks when your outlook is so confused?

rgds
lowerSharpnose

ps allegedly not aledgedly - it is picked up by the spell checker.
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