Uranium Stocks Soar On GLJ Upgrade: 33% Upside Seen For Cameco

While there is more in the report, GLJ concludes by asking rhetorically if investors are missing something, and answers that "from the discussions we have, we believe some assume large funds have decided to take positions in the sector (see strength in stocks recently), but because it is so small they are going in slowly, which even so is still causing major price spikes in the equities."

If true, this means that the rally "could go on for a long time as they build significant positions ahead of the inevitable price rise in the commodity. There is also talk about hedge funds now taking larger positions in certain equities as their first level investment in the sector, followed by a repeat of their 2007 efforts to buy physical uranium in an already tight market to drive up uranium prices so as to cash in on the leveraged returns in the equities they bought in advance."

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