Global X Uranium ETF (URA)

The whole nuclear energy theme has really jumped back into the spotlight. No matter what happens with tariffs and other things, we know that there will be expanded (perhaps exponential) demand for energy. Some of that will come from natural gas, and some from nuclear.

Making new highs. Big technical bases that can support higher prices. The ETF is a great way to play the space, and you don't take on too much business risk.

Uranium stocks have been pulling back since November, before the market started to correct. Technically in the near term, they're all broken. Long-term picture is excellent. Don't add here, until you see something change for the better.

CCO is about 22% of the portfolio. Generally likes the sector. Rising demand for clean energy in most places around the world. Supply constraints, due to years of under-investment. Increasing government support. Some of the underlying names are getting pricey, look for a correction. Paying 99 bps for HURA. US version, URA, is a bit cheaper.

Cameco makes up 25% of this. He likes this ETF and its sector.

It holds uranium producing companies and has some exposure to the Uranium price. Technically you would look at the highs from earlier this year. This might be a similar move. The most recent low before the breakout is probably the support level. He’d want to see more upside potential relative to the downside to support, so would not recommend it.

This had been in a downtrend and now looks like it is basing. That is a positive sign. The stock is now in a consolidation phase. What you might expect next, but you need to see happen, is that it could break out to the upside. You don’t buy until it breaks out.

Uranium ETF? As far as he knows, there is only one pure uranium ETF, Global X Uranium. This is dominated by Cameco (CCO-T) and NexGen (NXE-T). Rather than paying a big premium for an ETF, you are probably just as well to go into the market and buy Cameco. This is a speculation, but there is nothing wrong with that as long as you have positioned yourself accordingly as to how much you are willing to wager on the move in any particular commodity.

Uranium and uranium stocks in general have been under a huge amount of pressure. Recently there have been signs that the spot price for uranium has finally bottomed. That has been reflected in the price of uranium units as well. This one and Cameco (CCO-T) are probably the best ways of playing the uranium equity sector. URA is a basket of uranium producing companies, but also is very heavily weighted in one stock, Cameco. There are some encouraging things happening from a fundamental standpoint. There has been a bottoming process going on. Seasonally this is a time when Cameco does quite well, except it is not happening this year. There will be an opportunity, probably a little bit later down the road.

There is not a Canadian ETF that is similar. He loves the sector longer term. The uranium sector has been crushed 60-70% since the Japan crisis so it is ready for double or triple. We could lose 10-15% in the currency, but that is not a problem. There is an easy 50% in the next two years in the ETF. It will be very volatile. You have no choice, but to take on the US$ exposure.

Likes Uranium stocks and accumulating them is the right way to buy them. The fundamentals are lining up. Uranium is the cleanest source for energy for the growth in the world coming up. If we start getting Uranium above $35/$36 then trend lines will be breaking and you will get all kinds of good fundamentals.