Member Info for ParanoiaBlue

Nuclear power is back on the agenda Uranium exposure really is a must Uranium is hot. So hot that I believe lots of people are going to get burnt. But there looks set to be significant gains to be made in the sector and any prudent investor should have a strategy to play the upcoming uranium boom. The uranium price has increased eight-fold over the past three years – and I believe that there is further to go. There is a whole plethora of uranium juniors on Aim, with many more in the IPO pipeline. The outlook for the uranium price is undoubtedly bullish; there is a global resurgence in nuclear energy and supplies are unlikely to meet demand when all these reactors come on stream. But I am concerned about the large gains the sector has seen already. Uranium production has fallen below reactor demands and consumption for around 20 years – the difference has been made up by drawing down government stockpiles. Merger mania is also entering the sector – and that could lift prices further... So, is it time for a bit of momentum trading..? With all this interest and hype in the sector should you just throw some cash into a junior mining explorer and let it fly..? The simple answer is no; absolutely not. I believe that would be a crazy thing to do. I believe that a bubble is appearing in the uranium sector – with gains running too far ahead of reality. Remember, the uranium story is a long-term story. Political decisions take a long time. It also takes years to build a reactor. Although I view the gains in uranium juniors as overcooked at the moment, I also believe there are ways to play the sector going forward that could be extremely lucrative. You just need to look further afield than some of the overvalued, assetless propositions on Aim and PLUS Markets. The uranium price should AVERAGE $100 a pound this year The spot price of uranium is currently sitting at a record price of $135 dollars per pound. Adam Schatzker, an analyst from Royal Bank of Canada Markets who is widely regarded as one of the main sector experts, believes that buyers are eager to stockpile supplies at fixed prices, while supply is uncertain. Schatzker believes that the uranium price could AVERAGE $100 a pound this year. It is virtually impossible to find a bear of the uranium price and the general consensus of up to $150 a pound this year appears reasonable. According to industry analysis group U3O8 Media, as of December 2006 there were 435 nuclear reactors currently in operation worldwide.There are 28 reactors under construction, 64 planned and a further 158 have now been proposed globally. Over the course of a plant life, nuclear power is not only greener in terms of less carbon dioxide emissions, but it is also cheaper as well. Governments are wising up to this.More and more reactors are being planned across the globe. But now even infamous oilman George W Bush is backing nuclear The current US government has also re-committed to nuclear.The US public was stunned by the incident at Three Mile Island in 1979 and, after that, nuclear was off the agenda. It was political suicide to even mention putting a power plant anywhere in the US. GeorgeW Bush marked a massive change in US policy – and he did it with a grand statement. No US president had been near a nuclear power plant since Jimmy Carter’s emergency PR trip to Three Mile Island in 1979. But the Bush administration, despite its many faults, have realised that nuclear is actually the way forward, not back. So, in June 2005, Bush made a speech on energy strategy at Calvert Cliffs Nuclear Power Plant in Maryland. His speech was clear and to the point; and was greeted with resounding cheers from nuclear workers. It’s merger mania again... Beware... After the mega uranium merger that was unveiled between SXR Uranium One and UrAsia on 13 February, speculation has been rampant over which companies will be next.This has inflated the uranium bubble further. The new company will be called Uranium One and the merger will make the new group the world’s second-largest uranium miner. This is an alternative larger cap play to Cameco. Investors have been betting which companies will be next to merge or be acquired – but this makes me very cautious. I think a bubble is brewing. I also do not believe that the quality uranium juniors will be willing to sell out at this stage. The companies which are likely targets are those that are close to actually being a producer; say within the next three years. However, the board members of these companies are no fools. They are all bulls of the uranium price and see the potential rewards in the future as greater than what could be achieved through a short-term buyout. Therefore, I believe the prime targets - the assets that larger companies would like to buy and own for themselves - will sit behind a board that is not willing to sell. So, in my mind, the whole uranium consolidation story re

The best way is to edit BEFORE posting. For longer contributions, I usually type it in WORD, then simply “cut and paste” into L.S.E.

The best way is to edit BEFORE posting. For longer contributions, I usually type it in WORD, then simply “cut and paste” into L.S.E.

Thanks for that, I've copied, and will digest later. A simple "cut and paste" facility on this site - user friendly -would be great!

Didedo Very quickly. I’m actively, shorting most of the market right now, where-ever possible! [I had a chat with M-E the other day where I noted: where I was long and short, but I can’t remember where, right now! – It was a high-tech company but I wouldn’t put my pocket money there!] If you catch some of my postings on the “Main Menu” you’ll see my thoughts. I’m actually LONG on oil, some pharmaceuticals, “selective” miners, nickel, gold etc. …………and SHORT on ……….hmmmmm just about everything else [well not quite] Hold off until you are sure! I’ll, perhaps catch you on the individual boards PS Things will really quieten soon, for the hols, but still, as always, money to be made. Take care!!!

It would be helpful if you could include discusion boards for EFTs - i.e. PHGP; PHSP; PHAU; PHPD; and PHPP. ATB PB