"One of the worst hit sectors since July 2007 was uranium. As you all know, I believe that uranium has a big future as a clean energy. It is the cheapest and most efficient energy source in the world. Despite the price of uranium falling from $70 to $45 during the last six months, uranium stocks are showing significant returns and look to have bottomed".
Since then returns on uranium mining stocks have been phenomenal. In the last five days, two of my recommendations have returned in excess of 200%. That is 200% in the midst of one of the most negative and toxic market environments in history. The worst performer has provided a return of nearly 20%.
It is entirely possible that this massive surge in value will dissipate in the short term and profits will be taken. But as a long term investment, with the world looking for safe, cheap, non middle eastern fuel, it surely makes sense to have some uranium in your portfolio. Nuclear fuel will be the dominant source of power in the 21st century. It will not be dirty coal nor will it be oil. If you have a long term view, uranium mining stock at these prices offers very good value.
Just click the chart to enlarge.
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