Sunday, July 25, 2010
Megatons to Megawatts & US Stockpile aside... u3o8 still in play
As with the emerging markets, I am looking at a horizon measured in years, not weeks or months. Think back to all the hype during the pump-o-rama led by the "Original Uranium Bug" and how compelling the story was then. Well, it is still a good story with a very real reason for the post-bubble crash; the market is being satisfied by US and Russian stockpiles. Mikey Fulp is interviewed here at The Energy Report and gives a nice review of the situation. At some point, this former bubble is going to show up in the "value" bin.
Again, I am a dyed in the wool bottom feeder, so I must buy and then have a lot of patience. Some people think charts are phooey, others depend on them. Coming out of Armageddon '08 I became quite bullish on copper and oil while the fundy analysts were still quite bearish. With Uranium, I am dialing the picture out further and realizing that the charts will tell when the right time to buy is. They tell me now to begin nibbling and patiently add going forward. We'll let the fundamentals take care of themselves later on.
PS: Reading Mikey's picks, I am reminded of how I came upon FIS.v; it was through looking at HAT.v for a subscriber if I remember correctly. Looked into HAT, got the story, looked into FIS and bought the chart. Again, this warrants a closer look. As it is, Strathmore (STM.v) is one I have traded for years and now sits in the NFTRH portfolios as one of the few non-gold stock core holdings. As risky as small resource stocks are, it must be considered a value in relation to when it was priced 10x higher and people couldn't wait to buy it.