Australian (ASX) Stock Market Forum

Uranium, a Raging Bull

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kennas said:
I think some of it has been factored in richmond, but there might be some more upside when it's all confirmed. The market caps of these companies, that will not produce for a number of years, are looking a little toppy to me.
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This might have an impact on producer such as PDN
 
Is the uranium boom over for this short-term cycle, or because of big-guys in the town taking hair-cut when they are backing to work?

It is very common to see 30% to 50% gain for uranium stocks between a week before Christmas and first two trading days after new year.

Cannot find any uranium stock that reaches new high today. Looks like more bearish than correction.
 
From a psychological perspective, it would be interesting to see the market reaction to a 0.50c drop in the spot price for uranium...event though the last time it increased by $7.50 or so...I have a feeling they would be running for the hills :) Of course, I would not want this to happen, as I hold a good few U stocks, and only bought fairly recently, so am only sitting on small gains.

Just a thought.. :sheep:
 
kromey said:
Is USA a new high mmmmining?
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Kromey, yes, you are right. Mainly I am talking about bell-weather stocks, relatively large in market capital, such as PDN, SMM, BMN, EME, AGS, MTN, URA, NEL...

Actually, there are a few small players have reached intro-day all time high. But the overall uranium stocks are depressing. Maybe link to oil price drop??
 
Beware this bubble, the lower oil goes the less appealing U is. Remember that there is a long lead time for both mining the resource and building the end use facility. Also, U is not a scarce commodity, quite abundant (even in coal fired power station ash).

In the meantime a lot can happen. Commodities generally look to have reached a zenith or are very confused about the direction of the US (& therefore the rest of the world) economy, and also as witnessed by the choppy action of the XJO the last 3 days.

The U price could compete with oil to see who can get back to $35 first in a worldwide recession. :eek:
 
Dr Doom said:
The U price could compete with oil to see who can get back to $35 first in a worldwide recession. :eek:
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The U price could compete with oil to see who can get back to $35 first in a worldwide recession. :kiffer:
 
Dr Doom said:
hi spooly, care to forecast a price for U & oil in 12 months time then, to make it interesting? :D
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OK Dr D
just for fun
U @ $102/lb and OIL @ $62.45 IMO only :alcohol:
cheers
 
Dr Doom said:
Beware this bubble, the lower oil goes the less appealing U is. Remember that there is a long lead time for both mining the resource and building the end use facility. Also, U is not a scarce commodity, quite abundant (even in coal fired power station ash).

In the meantime a lot can happen. Commodities generally look to have reached a zenith or are very confused about the direction of the US (& therefore the rest of the world) economy, and also as witnessed by the choppy action of the XJO the last 3 days.

The U price could compete with oil to see who can get back to $35 first in a worldwide recession. :eek:
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I can understand oil going down a little due to fundamental reasons however i can't see how the price of U could drop at all due to the tight situation. The fundamentals should remain strong even if Oil drops IMO. Yes Uranium does look more attractive when Oil is more expensive. If oil drops I don't foresee any uranium powerplant construction restraints therefore the price of U should stand firm just IMO.

Cheers

Champ
 
To compare U in line with Oil is ridiculous. Fundementals are way way different! Sure Oil appears to be heading for $50 us a barrel, but look at the fundementals behind the U situation in the world. I agree with a previous post on U conservatively going to US$100 plb.
Just my thoughts!!
 
Germany may reverse an old decision to scrap nuclear power plants, partly because Russian oil and gas is unreliable due to political spats. Implications of this weeks shut down of oil pipeline through Belarus are that Europe will place more emphasis on diversification of energy sources and types, and that is more good news for uranium.
 
Good drilling/trench results can only have 3 minutes fame for uranium stock. People just cannot get over the $53 oil, and hoping fossils fuel will stage a coming back if oil price is keep dropping.
 
funny thing is there is no correlation (or not much) between lower oil prices and Uranium. In my opinion it is between Uranium and Coal, and coal is ruining the earth.
 
lancer said:
funny thing is there is no correlation (or not much) between lower oil prices and Uranium. In my opinion it is between Uranium and Coal, and coal is ruining the earth.
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Well I suppose I got that wrong then. What I should have implied was that the oil price could be construed to be a barometer for industrial activity (all things being equal eg supply disruptions etc). If there was reduced industrial activity due to a downturn, softlanding whatever you like to call it, then that would also show up in electricity demand.

Depends on your view of the health of the US economy. I view the US housing market as a pretty good forward looking indicator for the world economy. Housing starts are still dropping, builders are laying off people, transport is declining, less consumption, less electrical demand. Last qtr GDP will be interesting.
 
The the rest of world is bigger than US. The impact of what happened in US on the rest of world is diminishing. I hesitate to mention BRIC, so the economic leading indicator should be how many 6-pack we Aussie drink per day.
 
Sorry, what do you mean 40%? Do you mean 40% of world foreign debt? or 40% drop of US dollar value against Euro? Or 40% world economic growth? or try 40% oil consumption?

I know 40% of real estate agents in the whole world are in US.
 

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