Jan

26

 There are 441 operational nuclear power reactors around the world today, with the IAEA reporting that 130 new nuclear power plants are either being built or are in the planning stages. These are conservative estimates, with the actual number of new plants likely to be much higher. [Read more here]

As you might expect, the above site gives a very bullish view on uranium. On the other hand, it is almost impossible to find a bearish article. However, the availability of uranium properties with legitimate producing possibilities is very limited. Even then, a new uranium discovery (or even an established but unbuilt operation), usually takes about ten years to get into production. From what I've read, permitting it can be lengthy and expensive; one forward looking company spent nuclear's "dark years" acquiring already licensed properties … its price is up about 40% over the past year but about 3500% over the past five years.

It's not unusual to find untested companies whose stocks have already experienced runs of 1000-2000%. Even CCJ, the class of the field, has run up something like 700% over the last five years.

If you want to stick with the picks-and-shovels aspect of investing, find out whose got the contracts to build the new plants and who refines the raw product into usable material.

– Jack Tierney

C. Kin comments:

I recall from my early days in the business (early '90s actually) that there were a large number of dormant penny stocks left over from a prolific bubble in uranium shares in the '40s and '50s. Perhaps the chair could direct us to a historic reference on the topic, which was presumably as frenzied and irrational as the dotcom craze. I remember hearing stories about companies whose shares would take flight on rumors that they were about to develop an atomic train/boat/airplane and nuclear-powered consumer products.

Such companies today may very well (if they still exist) herd mountain goats and supervise moose pastures.

I'd love to read up on the topic (from someone other than Doug Casey).
 


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