Uranium; Hype Or ?

Last week we did an NFTRH+ on Uranium in general, with a focus on the Global X fund URA.  I personally decided to take a try with its largest holding, Cameco today on the drop to the SMA 200.  The next clear level is at just above 20.

ccj

Of interest is Uranium holder Uranium Participation, U.TO, as it sports a healthy premium to its NAV as of the end of June ($CAD 4.03/share vs. today’s stock price of 4.95).

That paints U.TO as a non-bargain as an investment, but it also makes it valuable as an indicator. Are these wrong-headed die hards refusing to give up the ship or long-term players acquiring the yellow cake mix for future appreciation?

u.to

You would think at some point the hype surrounding Japan’s re-boot, China’s U growth and the world’s inclination not to give up on nuclear power is going to manifest in a recovering industry driven by a recovering u3o8 price.  Meanwhile, as things stand in this snapshot in time, Uranium is in a terrible bear market.

u

Sometimes it pays to buy terrible bear markets, doesn’t it?  It’s worth a shot here.  CCJ is my first and thus far only position.

 

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