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$27.80 uranium futures

Well it seems now two of the cartels have cut production - and...

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kickit2me

4,638 Posts.

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09/11/17

20:56

Post #: 28661451
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Originally posted by AverageJoe ↑

I flipped AEE chart and being a spec, liquidity is always on the back of an investor's mind because the daily price move may or may not be backed up by the bigger end of town. The weekly looks horrendous and I am just commenting on what I see. This i s not a downramp.

Frm memory, U based in Sweden I think. In the same vein, GGG, also has a better prospect chart wise compared to the pure U plays I am seeing. Gone are the says for me to bottom pick and use patience to seek large cap gain if/when this green source of energy picks up among the sovereign energy policy. Fukushima is always hanging around to give it that negative reminder and you don't need to go very far when at any moment a breaking news of earthquake prone Japan comes alive.

There are far more comfortable uptrend stocks to follow and stalk. If one goes on thinking how much cap gains they can make as they enter, they will find that reality and expectation is a mutually exclusive venture. I rather look at how much I can lose on each investment decision.

Lithium is another trap that seems to have dissipated and the big money is as usual from phases of the lifecycle. The blue sky exploration is where the punting is most rewarding. Li prices are very much bull but the underlying stocks going into or in production have tapered off enthusiasm. The punters have moved on to Bitcoins, phenomena upswing unidirectional and this is where you don't want to be the last buyer!

Unfortunately I am super bearish U and the bunch that cut their teeth pre-GFC have now spent all the goodwill (cap raising) as each has a bloated shares on issue. Some have started mathematically consolidating all that excess shares for the purpose of raising more funds to buy time. This isn't sustainable. Cursory glance of 2 I know PEN/DYL is almost back to where it started post consolidation. Management is happy since they could extend their "working capital" and keep enjoying a good salary without much effort since all the ground work had been done, JORC, BFS, etc. Now waiting economic U spot to start talking up their project.

This is going to be like crude oil where someone or cartel have to sacrifice production for a better spot price but this will only encourage more alternate fracking source and the price moves in a directionless yoyo. I am not into the prediction game and Coal is a classic example. Just when we thought the destruction from 2012 high was permanent, out comes the fashionable Japanese striking massive price jump in security of supply contracts and prices roaring back. We need Coal more than we need U simply because Fukushima has exploited the fear of radiation risks. Good luck.

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Well it seems now two of the cartels have cut production - and you cant go fracking for Uranium.

Where to next?
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Well it seems now two of the cartels have cut production - and...

Top Stories

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

ASX Market Close: ASX closes above 8,400pts on green Wednesday | Nov 27, 2024

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game