Tuesday, November 11, 2014

Update On The Uranium Sector

The uranium market received welcome news on Friday when Japan announced they have approved turning on 2 of their nuclear reactors within the fleet of 48, which has been dormant since the Fukushima disaster in 2011. Some analysts expect half of their nuclear fleet will be turned back on in the years ahead.

The new demand for uranium, which power the nuclear reactors, comes alongside additional nuclear plant builds around the world. China, India, Korea and Russia currently have 70 plants under construction.

The largest uranium mining ETF "URA" bottomed on Friday at 11.16 and has risen to 14.20 as I write this morning. I began discussing the opportunity in this sector back in May of this year, and I have been steadily adding to positions over the past few months. For more see:

Opportunity In The Uranium Sector


4 comments:

  1. Tuna, when you discussed CEF a few days ago, you focused on its NAV. In today's post re URA, you focus on its price. Question: why do you focus on price and not NAV (or vice versa).

    ReplyDelete
    Replies
    1. The URA ETF holds a basket of stocks (not physical uranium), while the CEF is a fund that only holds physical metal.

      Delete
  2. Hi Tuna, After the URA took the rise last week, do you still see it as good value? I know its hard to say but any real upside may be a long way off...I would think.

    ReplyDelete
  3. is the URA ETF a good way to invest in this theme? or do you feel there are better selections in specific equities?

    ReplyDelete