Chart courtesy of u308.biz.

As the above chart shows the current spot for uranium stands at $47/lb according to both the leading sources TradeTech and UxC, with the long term price indicator holding steady at $70/lb. Over at NYMEX the data remains spasmodic at best with the December 2009 contract trading at $56/lb and the December 2010 contract trading at $58/lb.

The battered uranium stocks sector has more or less been consolidating in a sideways motion following a recent hike in stock prices. It was good to see this increase however we need to see both the spot price and the long term price head north before this portfolio will look anything like respectable.

However there are a few bright spots such as this one reported by u3o8.biz

And just this week Uranium One [TSX: UUU] announced it has entered into a long-term agreement with a Japanese consortium, which includes Toshiba Corp., the Japan Bank for International Cooperation and the Tokyo Electric Power Company Inc., to purchase 117 million common shares of the uranium miner at $2.30 per share for a total of nearly $270 million.

Japan intends to build 13 nuclear reactors over the next ten years and is the world’s 3rd largest nuclear power generator.

We will continue to look for bargains in this sector with the intention of picking up a few stocks here and there. ‘Go gently’ being the order of the day for us, however this sector looks extremely oversold and if there is a uranium stock that you have always wanted to add to your portfolio then starting now with a small purchase should work out well over the next two years.

Have a good one.

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