When Will Uranium Emerge from the Shadow of Fukushima?

Joe Reagor of ROTH Capital Partners explains the factors that have kept uranium spot prices down, how much longer they will be in effect, and why uranium should be on investors' radar screens today. He also discusses four uranium companies that are in position to benefit from the looming uranium shortage.

The Energy Report: How do you see the big picture for uranium? Spot prices have dropped recently. Are you still bullish?

Joe Reagor: It's a matter of time horizon. Many analysts, myself included, believed that the uranium price recovery was going to happen in 2014. Then when 2014 didn't happen, we thought 2015. Then when 2015 didn't happen, we said 2016. Here we are in 2016, and uranium is back under $28/pound ($28/lb) again. The recovery isn't happening.

Nuclear Water

There are two parts to why we're not seeing a spot uranium recovery. First is the uranium spot market has been rather tight in terms of overall percentage of production, and there have been some nuclear plant closures in addition to shutdowns in Japan after Fukushima. Add to that a lot of production growth already build into pipelines that has come on-line and ramping up production and creating a larger amount of spot uranium to be sold into a weak market. Cameco Corp.'s (CCO:TSX; CCJ:NYSE) Cigar Lake is an example of that. So we're getting this extra pressure on the spot market, but if you look at contract pricing, it has remained relatively stronger, in the low $40s. Producers are making decisions based on the contract price, not the current spot price. So there is a disconnect between spot and contract pricing. Continue reading "When Will Uranium Emerge from the Shadow of Fukushima?"

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Obama Vs. Putin And The Surprise Investment of 2014

By: Andy Obermueller Of Street Authority

I couldn't invent a better investment scenario than the one I am about to share with you.

A monumental shift is about to take place... and it could mean big profits for smart investors. It all has to do with a little-known treaty signed decades ago.

And while Barack Obama's White House wants to renew this treaty, Vladimir Putin and his cronies have stated that it's not going to happen.

Sure, not great for diplomacy... but as an investor, your focus should be on making money.

So what's the opportunity? Let me explain... Continue reading "Obama Vs. Putin And The Surprise Investment of 2014"

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