Uranium went from,at least when I was following it - $11-$150
Can you remember any articles about it? And the co. t have been buying I was calculating their value at $50 a pound. So actually these company's will stay strong as their competitors weaken.
Bloomberg has scared me out of more money than I care to admit. But wanted to share this with you for devil's advocate sake.
But you can see from the article and the commentary that everyone is focused on price. I'm focuse on value!
They are assuming that you are buying it to flip in a month or two. But if you are willing to hold onto these co. at least 3-5 yrs, one should see a significant increase on investment.
The nuclear industry is small and growing. The value of the companies is in proving their reseources and creating a feasibility study in order to borrow money to begin mining or be bought out.
Remember the dollar is tanking and countries that are going nuclear would rather have the resource that will provide for their citizens than dollars that act as a noose around their neck
And here's the kicker most of the companies mentioned already know what they have because the properties were once owned by the big oil co. Now they are proving, this spring, how larger their resource base is.
Bloomberg's article are the reasons not to invest in mining co. in general.
And these article's problems were with these mining co. as uranium has gone up 1000% . Where were they all they way up? Now they are going to dance on its grave?
Mr. Dines said that people short uranium mining "may truly have a different religious experience."
CCJ is not a great co in the fact that they didnt buy up mining resources throughout the world but instead focused on diversifying. The article should have mentioned buy uranium miners, short CCJ. Also the article didnt mention, the mining problems; only CCJ's problems.
Mr. Mitchell, the hedge fund manager, wants to buy more mining co. and he is trying to do it cheaper. I think it is totally unprofessional, CCJ is too liquid, so if he was short he could have admitted it. He never mentioned any of his positions which a more 'frank' person would. That other hedge fund manager was more open since he just opened up shop. And those clever resource managers bought and sold their uraniums. And I bet they are going to buy more XOM with that.
The article fails to mention that prices of uranium mining co. has gone down while the price of the mineral went up several times throughout this bull market. So as the mineral is going down, uranium up?
This is why if a newspapers really rips a company or sector apart for no reason other than pricing reasons. It's probably a good time to get in to the stock.
So in conclusion, don't write to bloomberg and express your discomfort or he'll be president of US. GO out and buy more mining co. They are cheap as opposed to one of his terminals that are 15,000 a yr. That investment in mining shares may truly turn to be a bonanza!
Hope your week goes well
Eric
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