CCJ: bought today at $20.9, at the close, an opening position.
Reasons:
1. the stock has now been chopped in half from its February highs.
2. Looks like it's trying to hold support at the 2010 lows, around $21.
3. We are now 5 months out from the Japan meltdown; 5 months of unrelenting bad nuclear news, plus a market meltdown.
4. Investors still holding, after reading about radioactive thyroids in Japanese children who ate radioactive beef who ate radioactive hay, will ignore further bad news....unless it's really really bad news...
5. This small position forces me to pay attention to nuclear, which will inform my (much larger) positions in other energy sectors.
6. I'll add more, in equal-$ increments, planning on a full position if we return to the 2008-9 lows at $12. (That's not a prediction CCJ goes to $12; it's a plan for what to do if it does)
Beginning August 8, when I was 100% cash and short, I've been slowly going long, buying mostly energy. Currently holding CCJ (uranium), Big Oil (XOM, RDSB), solars (FSLR, TSL,YGE,JKS), and WM. Will probably add BP; thinking about IOC, RIG, FCG (natgas ETF).
WM is the biggest trash-hauler in N. America. I consider them an energy stock, as they produced last year, more energy from their landfills (gas to run generators and garbage trucks), than all the solar energy produced in the U.S. And they pay a 4.4% dividend yield. |
