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Tuesday
Jan292008

Greenpeace Questions On Nuclear Power Answered

We always try to see both sides of an argument and always listen to what each side is saying in any particular case, even if we strongly disagree. Therefore we subscribe to Greenpeace and other anti-nuclear groups to hear what they have to say and we always treat their points with an open mind as if we are wrong on something, we would rather know sooner than later!

Greenpeace Questions On Nuclear Power Answered

Recently Greenpeace encouraged its supporters to put questions to the UK business secretary John Hutton regarding his stance on nuclear power and the future of Britain's energy and his proposals to build new nuclear and coal-fired power stations. Greenpeace gave some examples of what questions to ask him (as shown below) and we have done our best to answer them in an attempt to persuade Greenpeace that nuclear power is the most viable option for beating climate change.


Why have you given the green light for new nuclear power stations when they will at best only deliver a 4 per cent cut in carbon dioxide emissions sometime after 2021?

Firstly, please note that Greenpeace have not provided figures for how much other energy sources will reduce carbon emissions. For example, even if every area of Britain that was suitable for windmills was covered in them, it would only provide 10% of electricity demands. Secondly, the reason this figure may appear low is because the government is talking about building nuclear power plants in 2's, 3's and 4's instead of doing what is needed, which is at least 50 more reactors in the UK to combat climate change. This would dramatically decrease UK carbon emissions. They need to have these new nuclear plants built by five years ago and as that is not possible, the second best option is to start right away. Delaying the beginning of British nuclear expansion will only make the situation worse.

Why have you given the green light for new nuclear power stations when the first will come online in 2021 at the very earliest, long after the predicted 'energy gap' is due around 2015?

The reason the nuclear plants are coming online after the energy gap is because they should have been built sooner. Perhaps if there had been less opposition to nuclear power by groups such as Greenpeace, British politicians would have been more willing to update and expand nuclear power. They need to have these new nuclear plants built by five years ago and as that is not possible, the second best option is to start right away. Delaying the beginning of British nuclear expansion will only make the situation worse. This point raised by Greenpeace actually strengthens the case to begin building more nuclear plants ASAP.

Even though the Committee on Radioactive Waste Management said it wouldn't advise on dealing with waste from new nuclear power stations, energy minister Malcolm Wicks said on Newsnight that it would be dealt with by deep geological disposal. If this wasn't advice from CoRWM, where did it come from?

We cannot comment on where the British government takes its advise. However, the best thing to do with the radioactive waste is to follow what the French have done and are still doing today. Store the waste in special containers until we find out how to deal with it. After all, we only discovered nuclear power a generation ago, imagine what the next generation could discover.

How will the government achieve emissions reductions of 80 per cent by 2050, as suggested by Gordon Brown, if new coal-fired power stations are approved?

If Britain builds more coal power plants, we agree, this makes the situation worse. Therefore they need to stop building coal fired power stations and start building nuclear power plants on a large scale, to meet emissions targets.


You said recently on Channel 4 News that "we've got to solve the problem of climate change and energy security with the technology that is currently available". As carbon capture and storage has not been proven commercially, how can any new coal-fired power stations be justified?


It cannot be justified we agree. Therefore the government must turn to nuclear energy, a technology that is viable, available and carbon emission free.

Why does the UK not have a feed-in tariff system similar to that in Germany to help encourage renewable energy, including micro-generation of electricity in homes and businesses?


This sounds like a good idea, however “micro-generation of electricity” is not going to close the energy gap. These measure may help, but it will take nuclear power to fill the coming energy shortage.

Why has your department always seemed so hostile to renewable energy and favoured nuclear power, as demonstrated in leaked documents?


Nuclear power is probably favoured as it works and is a far more viable option to solving Britain's energy shortage and security problems.


How do you hope to meet the UK's share of the EU's proposed renewable energy target in twelve years' time when only Malta and Luxembourg generate less than us?

This problem is not a priority. The first and foremost priority is to supply Britain with a secure, stable and sustainable supply of energy. The government should build many more nuclear power plants to secure the UK with energy, then worry about jumping through hoops for Brussels. After all, is the primary concern of the British government meeting the needs of the British people or is it meeting targets set by the European Union?

If you are a member of Greenpeace or are against nuclear power, please post any questions you have in the comment box below and we will answer them to the best of our ability.

Stick with those uranium stocks, nuclear energy is the power of the future. Stay updated on the nuclear industry, uranium and uranium stocks by subscribing to The Uranium Stocks Newsletter FREE of charge. Simply click here and enter your email to subscribe.
Monday
Jan282008

How Far Will The Fed Go?

In the Federal Reserve meeting this week, we will almost certainly see another interest rate cut of at least 25 basis points, with the more likely option being a cut of 50 basis points. This will give stocks across the board another boost and deal another blow to the US dollar.

How Far Will The Fed Go

The majority of investors know that Ben Bernanke intends to continue to cut rates as much as he can to try and prevent a recession in America. However what is not known yet is just how far the Fed will go in their rate cutting policy.

Are rates heading to zero? Is Bernanke going to follow the policy of Japan when times get hard?

The Full Article is on our gold website, www.gold-prices.biz , please click here to read.
Thursday
Jan242008

Uranium Stocks: A Bounce Back!

Helped partially by the Fed Rate Cut, uranium stocks have bounced in recent trading after falling sharply since the beginning of 2008.

LAM 250108

One of the biggest gains was made by our Laramide Resources, which rose nearly 30% in just one day! Since the beginning of the week, LAM has risen from around $3.00 to nearly $5.00 which is a massive turnaround. Laramide is be no means alone in its rise, as other quality uranium stocks have also bounced. Two of our favourite stocks, Ur-Energy and Mega Uranium, have risen roughly 25% and 40% in the last few days respectively.

MGA URE 250108

The first conclusion one draws from this recent activity in uranium stocks is, that the emergency Fed rate cut has triggered a rise in every stock on the market. This of course is true and has had a big effect on the stock market this past week.

However when one takes a deeper look at what has gone on here we discover that there is a much bigger force driving these uranium stocks higher. It's our good old friend, fundamentals.
These are all great companies, with great fundamentals and a great outlook for the future. The recent positive news releases have reminded investors just how undervalued these uranium stocks are at present. Laramide reported drill results of 77 Metres @ 0.12 % U3o8 from 13 metres depth at their Westmoreland project. Mega Uranium also had some good news as they found 140 metres of 0.042% U3O8 and 0.76% copper at Igor, plus 76 metres of 0.417% U3O8 and 7.37% copper, and Ur-Energy had some test results showing 84% to 93% recovery at their Lost Creek property in the USA.

These good results are an indication of the great fundamentals that are backing the rise of quality uranium stocks, and will continue to push them in years to come. Investors appear to be realising how much money these companies stand to make out of their uranium projects at current U3O8 prices, let alone how much they will be worth in the years to come as uranium prices head towards our target of $200/lb.

Please remember that this will not be a smooth ride by any means as this is a small and highly volatile sector, as proven in the last month alone! However we think that it is a good idea to buy on dips such as this one and hold out through the storms, patience and resilience will pay off big time in the years to come. Buying on drops such as this one is the best way to make serious money as this uranium bull market continues. To stay updated on the uranium market and uranium stocks, please subscribe to The Uranium Stocks Newsletter completely FREE of charge. Just click here and enter your email address to subscribe.
Tuesday
Jan222008

Uranium Stocks: Monopoly Anyone?

Anyone who has investments in the uranium sector as we do, would have felt the effect of yesterdays drop, and the decline in recent months. In our opinion, uranium stocks are currently massively undervalued and have been sold off regardless of their great fundamental long term outlook.

Most uranium stocks are now below where they were in August 2007, when the summer credit crunch caused all stocks to be sold off dramatically. This is a cause for concern as the August lows had appeared to be a support level and if uranium stocks are going to fall through this level, technical analysis suggests we will have to hold on tight for further falls in uranium stock prices.



However the difference between this drop and the one seen in August is that this drop was fuelled by a lot less volume as shown in some examples below. After the massive drops in August we wrote that “this mass of volume suggests total capitulation”. At present we are trying to see a “bottom” in uranium stocks but we have not yet seen the masses of selling volume that we saw in the summer and this suggests that we have not yet seen the last crowd of sellers throw in the towel.

Uranium Stocks: Monopoly Anyone?

However even at current levels, there must be bargain hunters out there looking at these incredibly undervalued uranium companies and perhaps getting a little tempted. After all the fundamentals for uranium and nuclear power are the same as they were back in April where uranium was $138/lb. Also do not forget that uranium is still at $89.50/lb which is a great price for most uranium mining companies and stocks with potential projects in the pipeline. Perhaps when uranium producers start publishing impressive profits from mining uranium and selling it into these considerably high uranium prices, we may see some investor confidence returning to this sector.

There is a saying that “There are no problems, only opportunities.” Well how about this for an opportunity. A large scale hostile takeover of the entire uranium mining industry, buying out every explorer, near term producer, producer and any company with a decent project, some sort of uranium resource and the possibility to mine yellowcake. Why not?

The fact of the matter is that although takeovers and mergers were frequent when uranium stocks were going up, there has been little or no action since they started going down. However when a company's stock prices is low, that is in fact the time to be buying or making takeover bids, not when they are rocketing.

Take Uramin as an example. Uramin was bought by Areva for nearly $8/share and yet if Areva had waited until now they probably would have got Uramin for around $3. Therefore why aren't larger uranium companies such as Areva and Cameco, picking up junior explorers with quality projects? It is probably due to the fact that it would not be “popular” but the great investments are made when the product is not popular at all.

Bring that principle to a larger level, and one could launch a full scale takeover of the uranium mining industry for less than you may think. The total market value of every uranium stock listed on the Canadian exchange is under C$30 billion, this includes giants like Cameco and tiny exploration outfits that are only worth seven figures. Now the question is, who would want to buy a controlling interest, possibly a monopoly, in the uranium industry?

Firstly, if we could raise this kind of finance, we would certainly take the opportunity. However until we are offered the finance to carry this out, (email bob@uranium-stocks.net if you have some spare cash!) we must look to other possible buyers. The second buyer could be a large mining company such as Cameco, BHP or even an energy giant such as Exxon looking for exposure to uranium and nuclear energy. The third option would be a government interest looking to secure a supply of uranium for a future fleet of nuclear power plants that are going to provide energy for their rapidly growing economies and populations. Areva buying Uramin was effectively the French government buying more uranium to fuel their nuclear plants, so if China and India are going to move toward nuclear energy, why wouldn't they also look to secure a supply of uranium, especially with a stockpile of over a trillion dollars!

This is of course mere speculation on our part, but nonetheless it is still a possibility.

However going back to the uranium stocks at the moment, our gut feeling is to buy when things are bad, when there is “blood in the streets”. Therefore this suggests that we should be loading up on uranium stocks right now, but we are not buying as of yet as we are no sure that total capitulation as occurred, so there could still be a further downside to uranium stock prices. In the long term, nuclear energy is the power of the future and uranium is the fuel. Therefore despite the ups and downs, our uranium stocks should move much higher over the years to come.

When we think that we have hit the bottom we will be buyers again.

To stay updated on uranium stocks and the uranium industry, please subscribe to The Uranium Stocks Newsletter completely FREE of charge. Just click here and enter your email address to subscribe.
Monday
Jan212008

Uranium-Stocks.net Portfolio Update 21 January 2008

We are at a critical junction as many uranium stocks prepare to test the lows made in August 2007. Some uranium stocks have already broken this support but we are waiting to see if other stocks follow suit. Therefore the majority of our stocks are marked “Hold” as we wait to see how events unfold. The markets in general have suffered a sell off so far this year which has contributed to the sell off in uranium stocks although the severity of the sell off in this sector is difficult to understand.

Going forward we anticipate more difficulties in the financial markets with corresponding knock on effects for certain commodities. However it is difficult to see uranium stocks going much further down as they have already suffered more than most and there will come a point when they represent too much of a bargain to be overlooked.


Cameco Corporation – Watch
Cameco was trading at $35.30 on the TSE recently and therefore this stock has fallen back to its August low. We are waiting to see if Cameco can hold this level, however in the long term we this the troubles at Cigar Lake holding this stock back considerably.

RPT Uranium Corporation – Watch.
We bought RPT on the 19th February 2007 for $0.42 and sold it for $0.62 on the 13th June 2007 for a profit of 47.6% in 4 months. We still like this stock and so bought it back at around 50 cents, however RPT now languishes at $0.19, which is disappointing but not unlike many other junior uranium stocks, which have also been taking a battering.

Uranium Participation Limited – Hold
U is trading at C$10.10 which is roughly where it was at the height of the credit crunch in the summer of 2007. We bought at $11.97 on 21 November 2006 so U is now showing a small paper loss but we will continue to hold, as it offers direct exposure to uranium without the risks inherent in mining.

Strateco Resources Incorporated – Hold
We made a small investment in RSC at $2.30 so are pleased to see it trading at $2.87, totally defying the downturn in the rest of the uranium industry and we are in profit by about 24%

Fronteer Developments Group - Hold
Fronteer has been transferred to our gold investment account as we now consider it to be more of a gold play than a uranium play even though it still owns the lions share of Aurora Energy Resources, which we track here.

Crosshair Exploration and Mining Corporation – Neutral.
Having taken a small profit we continue to watch CXX. The stock is trading at about $1.76 and has performed better in the last couple of months than other uranium stocks.

Laramide Resources Limited – Hold
This stock is trading for about $4.22 and we bought at $5.78 on the 28 July 2006 so we are hoping Laramide will resume its march upwards soon. When we were sitting on a paper profit of around 80% we sold half in order to buy other uranium stocks, as we needed a bigger spread of stocks.

Mega Uranium Limited – Hold
We bought MEGA at around $4.0 on 27 July 2006. MGA is now trading at $2.25 so we are once again back in negative territory. MGA has a very good cash position and is well managed so we expect to see it trading a lot higher in the near future and it is worth keeping in mind that stocks such as Mega are very volatile and so have the potential to move upwards again very quickly.

Rodinia Minerals Inc. – We have decided to remove this stock from our watch list for the moment to concentrate on other uranium stocks. We wish the company the best of luck in the future.

Santoy Resources Limited – Watch
However having decided to sell three of its projects to Mega for 400,000 common shares in Mega we decided to sell. We sold on 23 April 2007 at $1.39 for a profit of 70% in 4 months. Santoy now trades at $0.40. This stock is not for us at the moment as they now have limited uranium exposure.

Khan Resources Ltd - Hold
We bought Khan on the 5th March at $3.63 and it dropped to $1.33 due to licensing issues with the Mongolian regulators. So, in anticipation of Khans management team finding a resolution to this problem we decided to buy again. (See Khan Resources: A speculative buy) the stock rallied and we took a profit of 15% in a matter of days before the stock fell back. Khan closed on Friday at $1.28 and appears to be back to the same price that the company floated on the stock market. However we do need confirmation, as does the marketplace, that the outstanding license issues in Mongolia have been resolved. Also note that Laramide Resources took advantage of this turbulence and bought 5.6 million shares in Khan, a good investment in our opinion.

Aurora Energy Resources - Hold
We bought Aurora on the 5th March 2007 at $14.17 and it is now trading at $10.77 much to our disappointment, but the company still does have a great project in the Central Mineral Belt and when uranium prices start ticking up again, so should Aurora.

Strathmore Mineral Corporation - Hold
We bought STM on the 14th April 2007 at $4.96 and it is currently trading at $1.95, which is a very disappointing performance indeed.. STM has been weak recently, which is disappointing to us, however we will hold, for now.

Ur-Energy - Hold
We bought Ur-Energy on the 23rd April 2007 at $4.75 and we also gave a second buy signal on the 24th August 2007 when we acquired more stock at $3.03. URE closed on Friday at $2.28, as the stock has taken a beating in the last 20 days or so. Ur-Energy had been making a good recovery so hopefully the recovery can get back on track for this stock.

UraMin Incorporated – gone to that big AREVA in the sky!
We bought UraMin on the 15th May 2007 at $6.72 and sold it for $8.36 on the 22nd June 2007 for a gain of 24.4% in 6 weeks.

Lets hope for better week.

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Saturday
Jan192008

Australia’s Uranium Policy is tough on India

Australian Foreign Minister Stephen Smith

Above: Australian Foreign Minister Stephen Smith


The former Howard government in Australia had agreed in principle to supply uranium to India however the new government headed by Mr Rudd reiterated Labor's long-standing policy of not allowing uranium sales to countries who wouldn't sign the NPT, according to The Age.

The Labour Parties election manifesto contained a policy of not selling uranium to countries that have not signed the nuclear Non-Proliferation Treaty (NPT) The Age goes on to say;

“Australian Foreign Minister Stephen Smith expressed his confidence that Labor's strict policy on uranium sales won't affect Australia's relationship with India.”

One can't help thinking that India must be disappointed by this U turn imposed by the new Labour government as the break through with the previous regime would have raised their hopes of securing a supply of uranium from the holders of worlds biggest deposits. The ball in is now in India's court, can India find another secure supply of uranium or is signing the NPT the only way that they can get the Australians into providing uranium for their own industrial revolution? It will be interesting to see how this situation unfolds and hopefully results in a mutually satisfactory outcome for both countries.

This issue was also covered in the Chinaview just click this LINK and The Hindu just click this LINK.


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Thursday
Jan172008

Uranium: Too Calm for Comfort!

Uranium chart 17Jan08

At a time when oil appears to be grabbing all the headlines in the energy sector as it flirts with the $100/barrel level, uranium lazes in the corner like a dog who's lost interest in going for a walk. Here we are in a commodities boom that some call a super cycle and the worlds future major player in energy adopts the roll of observer. True the price of uranium is still hovering around the $90/lb level which is more then enough for the quality uranium stocks to turn a decent profit. What surprises us is the lack of activity in the spot market for uranium.

“A few sellers continue to seek buyers” a quote from Tradetechs recent report. Down here in New Zealand we are having a heat wave but the weather patterns for the northern hemisphere appear to be fairly cold and wet thus the demand for heating and therefore electricity should be reasonably constant. So it raises the question of just where have all the buyers gone? Uranium was $138/lb at one point and then it fell to below $80/lb and has since drifted up to today's spot price of $90/lb. Over on the futures market the range is from $88/lb to $94/lb which is fairly steady. This is either an interesting game of bluff or the utility companies actually have enough uranium to keep them operational for some time to come, hence their reluctance to be aggressive in their pursuance of supplies. Either way the effect on uranium stocks is to leave them languishing on the sidelines. Performance is about comparison and compared to gold and silver who's associated stocks are generating terrific returns this sector lags behind. Its times like these that really test our resolve, why not cross the road and join their party? Its tempting isn't it? Well the fundamentals in our view, are still in place, we don't read about too many nuclear projects being cancelled do we!

We conclude that we are holding all of our uranium stocks and should a real bargain present itself we will buy again. This strategy is not for everyone and may not suit you, after all you are an individual and your circumstances are unique to you. Putting technical analysis and fundamental analysis to one side we are left with that old intangible 'gut feel' and it is said that fortune favours the brave so if you have balls of steel look to buy quality uranium stocks real soon.

Have a good one.

If you are a visitor to this adventure into the small market sector of uranium stocks and wish to receive our free newsletter then please click this LINK.

Tuesday
Jan152008

US Sub-Prime Problems Surface Down Under!

The sub-prime fiasco rolls on reaching the shores of Australia and New Zealand as reported in The New Zealand Herald over the last few days.

US Sub-Prime Problems Surface Down Under!

On Friday the 11th January 2008 an article by Adam Bennett in the Business section of The New Zealand Herald revealed that a number of banks including the Commonwealth Bank of Australia, National Australia Bank, ANZ and Westpac have a combined exposure of $850 million to the financially wounded Countrywide Financial.

Click here to read the full article.

Tuesday
Jan082008

A Readers Notes From Tehran On The Uranium Bull Market

The following is a summary of the fundamentals driving this bull market in uranium and uranium stocks, as written by one of our subscribers Daniel Ray.

A Readers Notes From Tehran

This is a fictional story and should be read with a good sense of humour...

******

I recently got a night job working for the CIA. Things were going pretty well, too, until I was caught sneaking out of a secret government facility near Tehran with classified documents and some photos. I had forgotten to silence my cell phone, which started blaring my “Mission Impossible” ring tone while I was passing underneath a guard tower on my way to the outer wall. (Got your message, Jared!) As you can imagine, I was immediately blinded by spotlights and swarmed by the Iranian National Guard. Before long I was sitting face-to-face with President Mahmoud Ahmadinejad. I don't know if the treatment I received was typical for detainees, but I had the distinct impression that he wanted something.

“More crumpets with your tea?” he asked with a grin, nudging the tray of goodies towards me.

“No thanks,” I replied as I finished off my third pastry, wondering if it would be my last. “I was wondering, though, if you could tell me how long I will be detained.”

“Ah yes,” he replied. He sat up straight and shook crumbs off the manila envelope which was resting in front of him. He opened it and inspected the contents. “I understand that you were caught in a government facility with stolen documents.” He paused, then leaned back in his chair. “But, we may be willing to overlook this unfortunate misunderstanding if you'd be willing to provide me with some useful intelligence.” Fortunately for me, I had an early version of this article tucked away in my ninja suit. Nervously I withdrew it, skipped the unnecessarily long introduction, and began to read.

“There are 4 reasons why I feel uranium will be an extremely profitable investment over the next decade.” My captor gasped at the word uranium. Evidently I struck a cord with him. At this point I was happy I didn't go with my original article topic, “Opportunities In Radish Farming.” I continued reading.

“First, uranium is cheap and abundant. In case you didn't know, the world is running out of oil. In spite of an increased effort to find new reserves, nothing significant has been discovered since the 1970s. So what does this mean? Either we find a cheap alternative to oil, or industrialized civilization grinds to a halt over the next few decades. Wind, solar, and even ethanol may play a part, but they're still too expensive and unreliable to make much of a dent.”

“Wind and solar are for sissies. Are there beefier alternatives?” asked the dictator.

“Yes, there are,” I replied. “Two natural resources are sufficiently cheap and abundant to dominate energy production over the next 50 years. These are coal and uranium. I prefer nuclear power (fueled by uranium) as an investment since the energy produced is both cheaper and cleaner than coal.”

He interjected, “Plus you can't make coal into warheads. Believe me, big waste of time.” He took a sip from his tea. “Tell me more about uranium.”

“Well, to give you an idea of uranium's potential, consider the fact that China can run for 2 days on oil, or it can run for an entire year on uranium, all with the same fuel costs! No wonder that China is currently locking up Australia's uranium reserves and has aggressive plans to build new nuclear plants. This brings me to the next reason why uranium may be an excellent investment.”

“Second, nuclear power is relatively clean and safe. Although concerns about nuclear accidents and waste are common, most of these are largely unfounded. Thanks to modern safeguards, chances of a catastrophic accident at a nuclear plant are next to nothing. Even on-site deaths from accidents are many many times fewer than from hydropower, coal, or natural gas. But what about harmful emissions? Nuclear power plants emit clean water vapor, and the National Cancer Institute found no increase in cancer incidents among people living near US nuclear power facilities. On the other hand, it is estimated that fossil fuel waste kills around 20,000 people each year in the US alone. Also, a coal power plant releases around 100 times the radiation of a nuclear plant of the same wattage.”

“I found coal in my stocking this year,” Ahmadinejad said suspiciously. “Perhaps the fat man is trying to kill me,” he muttered to himself as he wrote something down. “I'll deal with him later. So you think that nuclear power is supremo?”

“Well, I'm not saying that nuclear power doesn't have its concerns, but they may not be as serious as most people think. Also, the current prejudice against all things nuclear may, in fact, be a benefit to investors with the foresight to get in early.” He sat thoughtfully. I continued.

“Third, demand for uranium is increasing rapidly. Let's look at China, for example. According to the Australian Foreign Ministry, with whom China has been negotiating, uranium imports to China are expected to increase from 2.5 million pounds to 44 million pounds per year. Also, the People's Republic committed $50 billion to build 30 new reactors over the next 15 years. According to some analysts, these plants will only begin to generate the needed energy for China's booming economy. And that's just China! In addition to the 442 operating nuclear plants around the world, there are 28 being built, 38 on order, and another 115 have been proposed.

The dictator sat forward, and asked, “So if nuclear power is so cheap and abundant, cannot miners just increase production to compensate for this surge in demand?” I was pleasantly surprised by the intelligence of his question, until he grabbed a crumpet and missed his mouth completely. I shook my head and moved on to my next point, which conveniently answered his question.

“Fourth, supply probably won't meet demand for another decade. Currently, new mining production provides enough uranium to fuel only about half of the world's current nuclear power consumption. Much of the other half comes from decommissioned nukes. But these supplies are declining fast, and most of the Soviet weapons-grade uranium is gone due to the “Megatons to Megawatts” program. So what do you suppose will happen when these uranium reserves run out?”

“The American Imperialist Regime will crumble?”, he blurted.

“Um, no,” I replied. “But it will cause uranium prices to rise. Even if Uranium surged from its current price ($90) to $600 a pound, it would still be a cheaper alternative to coal or oil. Here's why: only a small portion of a power plant's expenses goes to uranium. This being the case, uranium's price could rise to $1,000 a pound before costs became prohibitively expensive. One might expect higher prices to lead to additional supply, since higher profits would lead companies to open new mines. However, it takes at least 10 years to take a uranium mine from discovery to production, assuming everything goes as planned. This means that prices will likely move much higher over the next decade before supply catches up with demand.

Ahmadinejad: “I've made my decision. I will immediately go out and blindly purchase uranium stocks in companies that I haven't researched.”

“I appreciate your enthusiasm,” I replied. “You're correct in that one invests in uranium through the stocks of exploration and mining companies. But I do have a couple of cautions. First, many uranium stocks aren't worth the paper their certificates are printed on. Second, because uranium investing is largely undiscovered by Wall Street, shares are thinly traded and prices can be volatile. This summer, some excellent stocks dropped to 30% of their highs of just a few months earlier! So don't use money that you're not willing to lose, and do expect wild swings occasionally.”

Ahmadinejad: “You make it sound risky. How should I proceed?”

“All investments have risk,” I noted. “But if you're investing for the long term, and you buy the right stocks at the right time (when they're cheap like they are now), holding uranium stocks may be quite profitable. Also, it would be wise for you to pursue expert advice on the subject. I can't make specific recommendations, but I can provide examples. I subscribe to the following three investment newsletters: (1) The Casey Energy Speculator, (2) The Dines Letter, and (3) The Uranium Stocks Newsletter. They give me specific advice on what to buy and when.”

My host stood abruptly, and shouted: “Guards! Get this man more tea! And bring him cushions!”

******

Aside from giving us a chuckle, this story does raise some important factors that are driving the uranium bull market and will continue to push uranium higher in 2008, propelling our uranium stocks to new highs.

To stay informed on the uranium market and investment ideas regarding uranium stocks, subscribe to The Uranium Stocks Newsletter totally free of charge. All you have to do is click here and enter your email address.

We would like thank to Daniel Ray of Utah for this article, remember if you want your voice heard then you can write an article for publication on www.Uranium-Stocks.net Simply email your article in Microsoft Word format, (complete with pictures and charts if you wish!) to bob@uranium-stocks.net
Friday
Jan042008

Europe’s Reliance on Natural Gas Challenged!


One of our readers has alerted us to an article by Adrian Michaels in The Financial Times entitled 'Europe urged to raise nuclear capacity' in which the chief executive of Edison issued a warning against regarding Europe's reliance on gas.

Europe’s reliance on gas challenged!

Umberto Quadrino, who is the head of one of Italy's largest utilities said:

If you look at the supply of gas to Europe over the next 15 years, we have to be scared.”

'Scared' is the word, when you consider that close neighbours such as Norway will not be able to meet the escalating demand, so where next? When we scan the horizon for others to fill the gap we have Russia, but there will be competition from China and others. The UK will be closing down their old nuclear plants between now and 2015, so they will have have to find around 20% of their electricity from elsewhere. However demand is rising and one estimate that we saw recently put UK's reliance on gas rising to 83% of its energy needs.

Mr Umberto Quadrino goes on to say:

A nuclear programme at a European level has to be taken into consideration,”

Three cheers for him and about time too!

If you wish to read the article in full please click this LINK.
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