Uranium Participation Corp. (U.TO)

There is a pretty good argument for uranium, and this is probably the best way to go. It looks like the uranium market is starting to tighten up. Japan is getting a lot more pressure and China is rolling online, so there can finally be some tightness to the uranium market. He is waiting for Cameco (CCO-T) to get below $15.

He added to it in the last week. You are buying it on the extreme cheap. It is a case of how long it will take for all the new demand to take effect as inventories diminish. This is a great way to play it.

He believes this is the way we go greener. Uranium has been in a multi-year base. The industry will come back to life when Uranium gets back to $43.

Japan is finally restarting some reactors. There has been an excess supply so the price has been depressed. This stock is at an 18% discount to the commodity. He likes it here. A couple of years out the supply/demand balance is headed to a shortage. It is a great play on the commodity.

Uranium? It has been pretty flat, but within a range. This tells you that you can take advantage of these trading ranges when they occur. You want to buy this when it gets close to the bottom of its range. Right now it is right in the middle, so probably not an opportune time to buy it.

Uranium is one of the few commodities trading at a discount to its global cost of production, of around $60 a ton. You are not going to see new supply from mines until you see something around that price. The long-term contract price is around $50 and the spot price is around $35. With this company, you are effectively buying uranium at a bit of a discount at around $33-$34. At some point there will be a rise in the global cost of production. There are a couple of catalysts including 1) all of the Chinese reactors coming on in the next couple of years, 2) a restart of some of the Japanese reactors and 3) supply is going to be constrained with no new supply coming on.

This is one of the few commodities that he is positive on because of the restriction in supply and all the reactors coming on line over the next couple of years. He has a decent position. He has CCO-T also.

(Top Pick Feb 10/14, Down 0.74%) The Japanese restarts have not been happening the way we thought they would. He thinks Uranium prices HAVE to go higher. It is an easy call that this goes higher.

(A Top Pick Feb 10/14. Down 5.43%.) Price of uranium has moved up a little bit this year. This used to trade right in line with uranium, but is discounting uranium at about $34, where the actual price of uranium is $38. Thinks uranium is definitely going north of $50 in the next couple of years. Feels this ultimately has to go higher.

He got out of uranium stocks some time ago. There is still a groundswell of opposition to nuclear power. As well, cheaper natural gas and cheaper diesel makes nuclear plants a little less competitive. He doesn’t see anything really exciting in the uranium area.

(A Top Pick Feb 10/14. Up 2.49%.) Thinks there are still some excess supplies out there and you still haven't got the Japanese restarts going. You Buy this more because of the reactors coming on in the next couple of years, particularly in China. Also, there are long-term costs to bringing in new uranium mines.

(Top Pick Aug 22/14, Down 15.34%) Had only one positive of the technical indicators and the others did not turn and so it was never actually bought. Now the price of Uranium has gone up 20% and yet this one went down 15%. This tells you that this is an area to watch. There could be an interesting trade coming in to the area shortly. Still in a period of seasonal strength and needs at least two of the three technicals to be positive.

He is not pushing uranium. There is nothing imminent he knows of that will fire up the sector. He owns FCU-V, which he will patiently hold.

Uranium futures is a very small market. U-T tracks spot uranium prices and holds a bunch of uranium. Spot uranium needs to go above $45 a pound for the industry to turn around. Japan is about to turn the screws up a bit. Nuclear is the most efficient producer of large scale energy. You want to buy these when they are beaten up. Prefers URA, however.

This one is dependent on where Uranium goes. Prices are around $28.50 a lb., but U-T is discounting a price of $35 a lb. You are not getting the Japanese restarts as quickly as expected. Thinks the price is bottoming but he would prefer to play it through CCO-T. U-T could do well over the long term.