Its the time that all uranium stock holders have been anxiously waiting for. The day of turnaround. The day when the correction ends and our uranium stocks start ticking upwards again.

We have always been absolutely confident that this turnaround would come, the fundamentals are relatively unchanged as countries all over the world are turning to nuclear power, and therefore uranium. The only question was, when would this day come?

The answer is that although we are still not totally certain, it is possible that that day has already been. Depending on which uranium stock you look at, the “bottom” could have happened in the last fortnight.

Looking at the chart above for Laramide Resources, we can see a wave of selling drove the stock down to $3.95. More shares were sold in that final drop, which could be the “final capitulation”, than have been during any trading session over the past two years. This could well mean that those trading sessions were capitulation scenarios we were looking for. Also, one should note that from this possible bottom, Laramide has gained nearly 65 per cent. This is evidence of just how much these uranium stocks can move. The correction may have been dramatic, but drama works both ways, and we could see an equally dramatic turnaround and bounce back in Laramide and other uranium stocks.

Mega has also impressed, with gains of 71% from its bottom and Strathmore has risen 67% since its “bottom” and even if one takes the $2.00 level, STM is still up 42%. This shows that investors are now becoming more prepared to buy uranium stocks. Prepared not only buy them, but pay large premiums from the bottoms, rather that entering low bids and waiting for desperate sellers to crack and hand over their shares at a ridiculously low price.

These events may be an indication that confidence is returning to the uranium market, and once we see some serious volume of U3O8 being traded at decent prices, this will give the market even more confidence and give the stocks new life. We wrote that many uranium stocks were looking like good buys on the 24th August, and we signalled a BUY on Ur-Energy, although we really could have given a BUY on the majority of stocks in our portfolio. We feel that this correction is massive opportunity to purchase uranium stocks at fantastic discounts. As the recent bounce shows, uranium stocks are more than capable of bouncing back to their old highs and beyond. Although we are not yet 100% certain that we have seen the bottom, we are confident that future downside in uranium stocks is limited and the upswing is coming very soon and it could be as dramatic, if not more dramatic than the correction.

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