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Gold/Mining/Energy : Uranium Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Cheeky Kid who wrote (13777)	7/30/2008 9:51:45 PM
From: TheSlowLane	Read Replies (1) \| Respond to of 30074

Absolutely! There shouldn't be much downside from here! I'll say it as often as necessary. As it turns out, it looks like mid-June may indeed have been the turn for the U spot price. It bottomed at $57 in that timeframe and has headed up from there. The stocks are another story, of course. Since misery loves company, the good news is that the U stocks have not been singled out for punishment. Look at a long-term chart of the TSX-V: It's at a level that it hasn't seen since 2005. And it's now oversold RSI-wise on the weekly chart, which has only occurred on five occasions since 2000. If nothing else, the index is due for an oversold bounce up to 2464 or so. I don't expect that this is a permanent condition although I concede that it is starting to feel like one, but that is characteristic of sentiment at a low, so no big surprise there. That said, unless the existing fleet of nuclear plants is converted to run on wood pellets and all the plants on the drawing board are scrubbed, I don't believe that the fundamentals have changed. If anything, they have continued to strengthen as one country after another announces their intention to add or increase nuclear energy capacity. Over the course of the last several years, there have been a few "corrections" in these U stocks that took them down 30-70% or so, depending on which ones you are looking at. This time around has probably been the most severe one yet in terms of percentage drawdowns and other indicators. Cash-strapped hedge funds on one hand and short-selling hedge funds on the other may well have exacerbated the situation. I think anyone using the current conditions to accumulate shares in quality companies with advanced projects will be well-rewarded, but it's not the first time I've thought that, so WDIK? IJABOTB...