Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Uranium Stocks
Uranium Price
Our RSS Feed

Uranium Updates

Enter your email address:

Follow Us on Twitter
« Japan edges back towards nuclear power with vote to restart reactors | Main | The Better Short: Gold or Silver? »

Are Uranium Stocks Being Unfairly Punished?

Henry Bonner

Uranium stocks are becoming collateral damage in the sell-off in oil over the last couple of months. Since mid-July, oil is down around 20% from $102 per barrel to $83 as of October 201. This has also become a problem for many uranium stocks. Uranium Energy Corp. is down around 27% in the three months ending October 20,2 Fission Uranium Corp. has lost over 30%,3 and big uranium producer Cameco Corp. is off 20% in the same time frame.4

‘I guess the market thinks you can put oil in a nuclear reactor,’ said Steve Todoruk, who joined Sprott Global Resource Investments Ltd. in 2003.

I protested: ‘couldn’t cheap oil reduce demand for nuclear power?’

Steve explains why he doesn’t think that’s the real explanation:

During the first seven months of the year, oil stocks were the darlings of the market, and many investors were recognizing significant gains on their oil positions.

During most of that time, uranium prices continued to fall, eventually bottoming out at $28 per pound5, and uranium stocks were generally hated.

Read more....

If you would like to know which stocks we are buying and selling please join us atStock Trader our premium investment service.

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

If you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

Please remember to check your spam folder once you have subscribed to ensure that our verification email has not gone astray and you are getting our emails.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>