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Good Morning Readers.
Before I begin I just want to quickly update
my readers on Tasman Metals (TASXF). As you are aware, yesterday I devoted my
blog to Tasman Metals and even created a YouTube videohttp://www.youtube.com/watch?v=8zQofI9g0w0devoted to this stock. Well the stock spiked 14.6% and closed at
$5.43. Take a look at the chart and Google Tasman Metals because I consider
this stock a buy under $6.00 and if this stock acts out as predicted it
won’t last long below $6.00. I also wanted to alert my readers that
tomorrow at 9AM in Eureka Nevada will be a big day. The Bureau of Land
Management will hold a hearing on the water permits for General Moly that I
wrote about on Wednesday May 4th. Please review the archives for
an in depth analysis of this company that I consider a sure fire winner. I
also posted a video of this company on YouTube. Please take a look by
visiting this link: http://www.youtube.com/watch?v=yWCeWBCAk0E devoted
to GMO.
Today I wanted to devote this post
to uranium stocks that are yesterday’s news and to the media, who
believe they are no longer worthy of even mentioning. Before the tragedy at
Fukishma uranium stocks were on a tear and had tripled in value since last
October. The media pays no heed to the fact that they stopped the nuclear
renaissance dead in its tracks. That was yesterday’s news. What havoc
can we wreak today to sell air time and protect our “Phony
Baloney” jobs? It’s times like these when we need to focus and
remember that just because it was reported in the media does not make it so.
In fact it usually works the other way. We should all realize that very
little has changed in our uranium stocks, other than stock prices being taken
out to the woodshed and beat to a pulp thanks to the ubiquitous media whose
job seems to be to create frenzy and wreak havoc before moving on to their next
victim. The fact is that no other country, other than Germany whose
leadership is in flux and is quite weak, has not abandoned nuclear energy.
If you recall my post from Thursday
May 5th I spoke of
Bill Gates speaking at the TED conference in Long Beach California. Mr. Gates
was asked, if he had one wish for the future what would it be? Surprisingly
he answered that he would wish for “energy miracles.” He went on
to talk about a company (which sadly for my readers is not a public company)
called Terra Power. He spoke passionately and frankly about the use of
nuclear energy to become energy independent, not only in this country but in
the world. I found it remarkable that Mr. “Green” techno-geek was
completely bullish on nuclear energy. Mr. Gates went on to say that people
killed per kilowatt produced is much safer in nuclear energy because while an
accident using nuclear energy is a catastrophic event, the burning of fossil
fuels kills more people but at a slower rate which is more preferable to
politicians.
We must remember that nuclear
energy is still in its infancy. Nuclear energy is forty years old and most of
the reactors that are on line are forty years old. Since the emergence of
nuclear production the technology used to create nuclear energy has made
quantum leaps. We have developed newer and safer reactors. Lessons have been
learned, technological advances have been made and precautionary measures
against cataclysmic events are being implemented. I have no doubt that in the
next 10 years we will see reactors come on line all over the world as nuclear
energy is a critical element to the development of emerging economies that
require a great deal of energy.
Yesterday, in the New York Times,
Japan’s Prime Minister was quoted as saying that “Japan is not
reconsidering its dependence on nuclear power.” The article reaffirmed
Japan’s nuclear energy use.
China, Korea, India, Turkey,
Indonesia, Russia and the United Arab Emirates are proceeding with their
nuclear plans. Moreover, President Obama declared his position to go ahead
with nuclear construction. With the advent of new, safer technology in
reactors we will produce the needed energy for the world.
Mistakes were made and lessons were learned
but with the advent of newer and safer reactors the world will quickly
reconsider the perils of nuclear energy and replace the old antiquated
reactors with the newer safer reactors.
The media has little ammunition left
to fire at the nuclear sector. They are running out of stories to report
whose sole purpose is to sell toaster ovens, bath products and air time. We
must never forget that uranium stocks are like money buried in the ground. If
not used today it will always be there for potential use tomorrow.
It takes time, effort and money to
build uranium mines and go through the permitting process. Our uranium mines
are irreplaceable. Our uranium stock selections will survive and grow as we
are in the midst of a turnaround process right now. It may be slow in coming
but with patience and fortitude, investment in our uranium stocks will be
amply rewarded.
Cameco (CCJ) is the
“Apple” of uranium stocks and is the
largest publicly traded North American uranium company. This company is the leading producer of pure uranium. See chart
below.
Before the Fukishma accident this stock was
trading in the $45.00 range. Yesterday it closed at $28.99.
According
to a report from Indie Research one catalyst giving a boost to the
downtrodden uranium sector today is the Uranium
Stocks Index is up 3.1%.The Index has plunged more than 40% since the
Fukishma accident which led to a massive sell-off in uranium stocks. Despite
reporting first-quarter results that missed analysts' estimates, Canada-based
Cameco said it still expects to produce 21.9 million pounds of uranium this
year and the company expects to sell 31-33 million pounds of the materials.
Cameco added that it expects sales to be heavily weighted toward the second
half of the year and that it has a strong outlook for uranium in the future
and is sticking with a plan to boost annual production to 40 million pounds
by 2018.
Positive comments from Bill Gates
and Warren Buffet also appear to be helping calm fears about uranium stocks.
Warren Buffett, speaking at shareholder meeting of Berkshire Hathaway was
reported to have said that "nuclear power is important for the world."
I am
long Cameco (CCJ) which is up 4% from my entry point, Uranium Energy (URG)
which is up 3% and Dennison Mines (DNN) which is up 2%. I also am watching
Uranerz Energy (URZ) in which I have no position but that stock is also up 2%.
If you believe, as I do, that until
the next Mark Zuckerberg comes along that discovers some way to produce
tremendous amounts of energy with no environmental impact in a way that we
can’t even begin to imagine, then nuclear power is not going away.
Until that “dream” day comes, however, we need to continue our
efforts to make the production of nuclear power safer. We need to move to
take the old reactors off line and replace them with the new technologies and
continue to refine them. I believe that the production of nuclear energy is a
“work in progress.” We most certainly have come a long way
towards that goal in the last forty years and I can only imagine how much
safer the new reactors will be in 10 or 20 or 30 years from now. If you
believe as Bill Gates does and Warren Buffet does and as I do that the
production of nuclear energy is important for the world to continue to
prosper, I suggest that you take a look at the four companies I have just
mentioned, study them and if you feel comfortable with the new technology in
nuclear reactors, consider opening a position in uranium stocks.
Thanks for visiting and Stay Tuned!
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