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UUU

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Wizard
Super Contributor
http://www.world-nuclear.org/info/inf17.html This makes an interesting reading. 60 reactors under construction! 27 of those in China. The question is..how do you convince an emerging market to stop building these reactors?? The answer is..You can't!! That's why the media doesn't even bother to go there! Germany won't stop its reactors..will just do a safety inspection on them. Which means..UUU is presenting us with a wonderful opportunity today. Buy a truck load of it..because it's going to 100 bucks in 2-3 years time!!
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Schmieglie
Not applicable
I agree that there are still plenty of money going into nuclear, and it will only be a matter of time before the share price picks up again. My question is, how far is it expected to drop before it starts to get bullish again?
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Not applicable
Agree with Threshold. A dogs of the dow strategy requires deep pockets and a wide field of investments. The principle is the same as an angel investor. Out of say 10 investments, you are looking for 2 or 3 to shoot the lights out, and the remainder to either break even of fail. Now compare that to investors like Koos Bekker at Naspers, who get on board with early phase growth projects. Much higher success rate, and still get the odd investment to shoot the lights out.
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SimonPB
Valued Contributor
folks you missing the point .. it is not about how much demand there may or may not be .. the point is that there is plenty plenty supply ..
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THRESHOLD
Super Contributor
Another point: URANIUM is technically a precious metal. Many of these mines have a 7 year LOM; Yet they are hugely expensive in terms of capital investment (sound like a gold mine to you?) If you study the cash flow models for UUU's mines - they are rubbish (with a capital "R") You need a prolonged accelerating rally in U308 to make money here. Compare this to Coal, Iron ore, Manganese, Potash ... If you want to play this event - buy coal, steel ingredients, fishing, relocation of industries (SA carmakers maybe?)
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kwagga
Super Contributor
All this talk is mostly speculative. Sentiment is negative and will remain so for quite a while. Why buy this ***** when so many blue chips are starting to look like good value? Chasing the speculative shares ends up in tears most of the times. After this correction, I think we'll have some consolidation before things start moving up, so there is no rush to get in first.
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Fredsed
Super Contributor
U3O8 goes radio GaGa... http://tinyurl.com/48wo7wy
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Fredsed
Super Contributor
You may choose to add 4 years to the expectations of future onset of supply issues that were previously influencing the U3O8 spot price. 436 nuclear units operating in 30 countries, supply about 15% of the worldâ_Ts electricity. (Hydro is about 16% and other green supply is around 2%) 115 new units were going to start up by 2018, with 18 set to shut down. On that basis a U3O8 supply shortfall was projected by the WNA and others to commence from 2014 and increase thereafter. Conservative projections shift this date to 2018 which is now looking more probable. Hedge fund speculative price action rules.
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Not applicable
4 years is a hang of a long time for a mine to sit and wait. They still have the niggly little issue of cash flow to have to deal with. And ... And, they need to continuously inject new capital into the business to increase life of mine. So betting on Uranium prices to increase in 4 years is one thing, betting on a specialized uranium mine not to have to go out to the market with a begging bowl anytime prior to the forecasted rally is something completely different. Why not just invest in a good quality gold mine, if you are so sure about Uranium increases. They produce the stuff as a byproduct anyways, and have better chances of maintaining cash flows through gold sales. In theory, you will still get your windfall profit if the Uranium boom is not currently priced in (Although I would stay well away from a South African gold mine, if I were you guys & girls. )
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Wizard
Super Contributor
Before this UUU was going up. I made good money on this exact same rally which started Nov 08'. Don't think the trend will change. If I ever see a gold mine going up I'll put money into that as well, but they don't!
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