by Travis Johnson, Stock Gumshoe | December 12, 2013 9:33 pm
This latest pitch coming through from the Wealth Daily[1] folks, for Jimmy Mengel[2]’s The Crow’s Nest advisory, has caught the attention of plenty of Gumshoe readers — it starts with a long spiel about tapping into the “secret” holdings of billionaires by using a SEC disclosure rule that these rich folks are all fighting tooth and nail, but then settles in to tease us about a few specific investments that they think will boom (and that they found, presumably, in the pages of these SEC disclosures).
The SEC data they talk about in the ad, by the way, are the 13F[3] filings — generally these are due 45 days after the quarter end from all institutional investors and fund managers, which is why we know quite a bit about the holdings of Warren Buffett[4] or Carl Icahn[5] and most of the other celebrity investors and hedge fund managers, similar to the quarterly disclosures by mutual fundsd. They don’t have to disclose positions that aren’t traded in the US, and they can occasionally get permission to keep one of their investments secret for a bit longer (as Buffett does from time to time when he’s in the midst of trying to build a large position at quarter-end and doesn’t want to boost the price up, I think he last did that when he was buying IBM shares for Berkshire but my memory might be faulty), but other than the fact that this data comes with a time lag that is quite substantial for some investors it is genuinely valuable information.
Of course, everyone who wants it can get it for free from the SEC’s Edgar database[6] so it’s not that valuable. It’s definitely interesting to see the changes in portfolios as big investors shuffle their deck chairs and buy or sell, but the most prominent ones are also widely reported on CNBC and in the investing pundit universe in general and there are a large number of websites and newsletters that track 13F filings to try to turn up exciting info. Surprising new additions or sales of existing positions can certainly move stocks on the day that these 13F filings come out, but that’s definitely the exception (and, of course, the portfolio that’s being disclosed is about six weeks old when these are released — so they could be impacting stocks that the original superstar investor doesn’t even own any more).
And many of these folks have truly massive, diversified portfolios of dozens or hundreds of stocks under their management so there’s plenty of room for smaller stocks or smaller transactions or less-well-known investors to fly under the radar to some degree.
Which seems to be the point of this teaser pitch — though of course, it has to be a “secret” or it wouldn’t be any fun! Here’s a bit of the spiel just to give you a taste:
“Why America’s rich elite will do anything to keep this document out of your hands…
“The story behind this little-known document might make you angry, especially if you’re tired of Wall Street’s rigged game.
“The good news is this document could have a huge impact on your wealth this year.
“The government has been publishing it since 1975 at a non-descript Federal office located at 100 F Street in Washington, D.C., just three miles from the White House.
“Even though it has been publishing it for the past 38 years, 99% of Americans don’t know it exists. And it’s not hard to see why…
“America’s richest investors have done everything they can to keep it off-limits from regular folks like you and me.
“They won’t talk about it. They won’t even acknowledge it. Most of them won’t even tell their own family members this document exists.
“But even with all their attempts to keep this information underground, a small circle of ordinary investors like you and me has managed to access one of THE closest-held investing secrets in history — making their own fortunes in the process.”
And what’s up with the “secret metal” bit? Here’s how they put it in the ad:
“Elite Investor #1: “The Secret Metal that Could Add a Zero to Your Net Worth”
“As you know, from 2002 to 2011, gold[7] went up 600%.
“If you missed that big bull market in gold, don’t worry…
“Now you have a second chance to catch a bull market in another metal. Only this bull market has the potential to be much bigger than the gold bull market.
“One of the wealthiest people in the financial world considers this to be one of the most incredible opportunities he has EVER seen.
“This super-investor turned some $15 million into roughly $460 million for his customers from 1998 to 2006. Now he’s massively investing in this metal.”
The Mighty, Mighty Thinkolator can tell you that this “super-investor” is Rick Rule[8], who used to run his own shop as a small investment banker and advisor in natural resources, with that incredible run into the mid-2000s, and merged his company with Sprott, the big Canadian asset manager, a few years ago.
And what’s that “secret metal” he’s apparently hot on now? Here’s a bit more:
“I’m not talking about gold, silver[9], platinum[10], or palladium[11]; this is an opportunity I doubt anyone reading this has ever considered before.
“It’s completely separate from the U.S. economy, which means no matter what happens to America over the next few years, you could still make five times your money on this single investment.
“In the 1970s, when this metal entered a bull market, it went up tenfold.
“And that was not the only time this metal made a lot of people rich.
“There was another bull market more recently, from 2000 to 2007…
“in the last bull market, this same super-investor was heavily investing in the producers of this metal. He says a lot of people who followed him back them ‘added a zero to their net worth as a consequence of that market.'”
So what’s the deal? What’s the secret metal that Rick Rule made millions from in the last bull market, and that he’s hot on again now?
Uranium.
Well-timed, since our uranium[12]-explorers-vs-uranium-producers/">longtime reader Myron Martin shared a piece on uranium just a week or so ago — but you probably knew that already, and we’ve seen a consistently rising level of chatter about uranium from many of the newsletter pitchers and free pundits we follow. It’s a nice story because it has lots of global intrigue and also has a strong catalyst that’s likely to shake up the market in the coming year — so it’s a really hard market to figure out, and not just because it’s not really an “open” market like we have with most commodities (there are no uranium futures, you can’t take delivery and store it in your basement unless you want to create an army of radioactive zombies, etc.).
The “shake up” to the nuclear fuel market is the end of the Megatons to Megawatts program that had Russia[13] dismantling their nuclear warheads and selling the fuel to the US to be reprocessed for our power plants — Putin declined to extend that program into next year, so there will be more Russian fuel on the open market but also more demand from US power plants that will likely mean we need more mined supply from somewhere. Folks are still expanding the use of nuclear power for electricity generation and building new reactors, it’s just that they’re not doing much of that here in the US or in Western Europe or Japan[14], they’re doing it in China[15] and, to a lesser degree, India[16]. And even without new reactors, existing reactors are being kept alive longer and longer and need refueling.
The uranium market is certainly not super-predictable — uranium prices fell in the late 2000s financial crisis along with everything else, partly because the US was selling down some of its stockpile, then there was a boomlet into 2011 that started to wither just before the Fukushima disaster in Japan and then collapsed following that disaster … and despite the fact that absolutely everyone in the uranium business has been pretty focused on the end of “megatons to megawatts” for several years now, the price of uranium on the spot market (which is a small piece of the market, but as close as we get to real prices) has been falling pretty consistently over the past year.
Here’s a little more from the ad:
“This super-investor believes the stage is set for the next bull market… and he thinks it will be as big as the last one. That’s why he’s investing heavily in companies that produce this metal.
“In short, he thinks these stocks will, on average, quintuple in price in the next two to three years.
“Soon this will become one of the biggest topics in the investment world, as more and more people start hearing about it. I wouldn’t be surprised to see this story on the front pages of every major financial newspaper before the end of the year.”
Do we get any more clues about specific stocks they’re suggesting? Well, beyond the fact that they hint about Rick Rule and presumably they like the uranium stocks that he likes, we do get this:
“In this report, I also reveal the name of that company that rallied almost 18,000% in the last bull market. I wouldn’t be surprised to see this stock returning ten times your money in the coming bull market!”
Well, I don’t know for sure which one that was that rallied 18,000% — the huge winner I see mentioned most often from that last uranium bull is Paladin Energy (PDN in Canada[17] or Australia[18], PALAY on the pink sheets), which went from a penny to ten dollars (it’s now back to 45 cents), but that’s not quite 18,000 percent, and a great many uranium stocks had spectacular runs and equally spectacular collapses in the past 10-15 years.
And though I don’t know that we’re going to end up seeing all the holdings associated with Rick Rule in SEC filings, he is part of Sprott now and Sprott reports its US holdings on 13Fs like other asset managers.
A quick scan of the 13F pulls up a relatively small position in Cameco (CCJ)[19], the first pure play “Major” in uranium that would come to anyone’s mind, a larger position in Denison Mines (DNN), and no other uranium stocks. But I’m not sure whether he might have other assets that aren’t reported through Sprott and if they’re not holding these stocks in the US, they don’t have to report anyway — so they could easily be holding bunches of little Canadian or Australian uranium miners and not be disclosing them.
If you’re interested in specific stocks in the uranium field, you’re probably going to continue to hear about lots of them this winter — which will mean that lots of little stocks with no real hope of becoming producers get promoted as the attention on uranium grows (assuming, of course, that there isn’t another meltdown or financial crisis first). I’ve heard Rick Rule speak positively about Fission Uranium (FCU in Canada, FCUUF on the pink sheets) and Denison Mines (DNN) in the recent past, and they’re both in the highly appealing Athabasca area where most of the highest-grade uranium deposits (like Cameco’s) have been found. He has also suggested Uranium Participation Corp, which is as close as you get to a direct play on uranium prices (more on that in a moment).
I’ve also seen the recent pitches from other folks at Angel Publishing[20] that appear to me to be teasing the tiny upstart Azincourt Uranium (AAZ in Canada, AZURF on the pink sheets), which is also near Patterson Lake up in the Athabasca area. If you’re looking just at uranium itself, then the easiest exposure is Uranium Participation Corp (U in Canada, URPTF on the pink sheets), which is managed by Denison and acts kind of like an exchange traded fund for uranium — it simply holds a portfolio of physical uranium in storage to profit from a rise in the price. And you can check out Myron’s article from a week or two ago for more ideas[21] in the teensy weensy junior part of the market (the part that spooks me).
Do I own any of ’em? No, and I don’t have to file 13Fs either … but I expect uranium will have a good ten years. Doesn’t mean it couldn’t fall in half again, particularly if there’s another crisis, but I think we need nuclear power (preferably from newer, cleaner, safer plants — let’s keep shutting down the old, leaky ones) and eventually someone’s going to have to be willing to pay more for it or we’re going to stop looking for and mining more deposits. I’d personally probably stick with Cameco, Denison, Uranium Participation or the other relatively big companies — mining uranium is a big deal and it’s expensive, current producers are much more appealing to me than explorers.
So what do you think? Moved to follow Rick Rule into uranium? He’s been saying it’s a long-term no-brainer all year, but is also careful to say that even “no brainers” can take a far longer time than you think to play out. Have a favorite pick in the sector? Let us know with a comment below.
P.S. Yes, there were two other ideas teased in this pitch, too — more on those shortly.
Source URL: https://www.stockgumshoe.com/reviews/crows-nest-the/the-secret-metal-better-than-gold-that-could-add-a-zero-to-your-net-worth/
Copyright ©2024 Stock Gumshoe unless otherwise noted.
The book is “The Mad, Mad, Mad World of Climatism” by Steve Goreham, PE.
Sorry
How’s that Fukushima thing working for ya these days?
I’m nearly 71, and have two top-ranking physicists as friends, but neither one can adequately answer my question, “What do we do with the waste?” Yeah, thorium is blah blah blah great & all that, BUT: TPTB want U2-powered reactors so they can build MORE nuclear weapons, although the current stockpile is enough to kill the entire planet 5000X times over, which according to Dr Joseph C Pearce, is not exactly the definition of “intelligence” at work.
Look: even a little radiation is NOT a Good Thing, as the negatives are accumulative, and Fukushima is NOT going away, only get worse every day. Few people really understand what’s going on, nor the consequences, which are already in play. How do we spell ‘cover up’?
The MSM are never going to tell you what’s really taking place, but anyone w/half a functioning brain [OK, 50% of each lobe!] has to admit that 1. The Three Laws of Thermodynamics have NOT been repealed, and 2. the jet stream and ocean currents are 24/7/365 bringing the entire planet ALL the radiation from Fukushima to everyone, no exceptions here. And you thought Chernobyl was the worst? Now THAT’s funny. NOT.
The bottom will fall out of the U2 market in less than 18 months, when it becomes utterly impossible for medical science to deny what’s happened, as many –if not most– medical professionals are honest, and will report the truth. After all, they have children and lives as well as Our Glorious Liars do –sorry!– I mean, Our Glorious Leaders do!
Good thing I’m not a pessimist, only a mad-cap realist, eh?
All best, from your illustrious,
self-employed-idiot correspondent,
glowing in the dark of Victoria, BC,
Joseph & PTSDakota Bear[ly]
PS: Write me, if you still have the strength….
jefasciani@shaw.ca
MOre people die mining and transporting coal, than all deaths from nuclear accidents combined, and that says nothing of those killed by breathing particulates from burning coal. The mess in Japan will be cleaned up eventually. You get more exposure from cosmic radiation from the sun by far than you get from that wafting around on the jet stream. And will none of the critics here investigate new reactors before spouting off here with ignorant claims? New reactors like Molten salt use high level existing nuclear waste as fuel and leave nothing more radioactive than yellow cake to be buried again . They don’t need more uranium mined. And thorium reactors don’t either. If you do invest in Uranium I might suggest you do so for a short term and watch it closely as by 2020 there may be far less need for it than today.
I hear the distinct sound of hot gas being evacuated from a puntured balloon – I am not a rude person by narure, but the drama queens who seem to proliferate in the investment advice “industry” are really beginning to…make me angry…they make the snake oil salesmen from the Old West seem like paragons of truth and virtue. Not all of them by any means, but I have personal experience with what I believe to be the questionable veracity of Angel Publishing, so Stock Gumshoe’s analysis does not surprise me at all. Keep uo the good work, Travis. You are a breath of fresh air in an “industry” whose gene pool needs a big dose of chlorine,
Hey Fasciani your CV on Link-in suggest a MIke Holmes wanabee—not impressive. Certainly not anyone that can discuss Nuclear Power given the fact that you never finished college.
I have all the strength to make you look like the fool you are portraying, a loud Mouth Hoser.
But that’s not what the Gumshoe is all about. Your entitled to your opinion, warped as it is—but not to the FACTS.
No one DIED at Fukushima and radiation under 5000 m rems is healthy. You didn’t do your homework assignment HORMESIS. Probably why you didn’t finish college.
For the environmentalists out there, ran across this interesting website while trying to get as much information on Fuel Cell Energy as possible, so thanks to “slick rick” for pointing us in that direction, even if I have my doubts that fuel cell technology is ready for the big time.
http://www.gm.ca/gm/english/ecologic/chevrolet/overview?adv=85042&mkwid=goo_%7C_%5Baccount_name%5D_%7C_Segment+-+Green+-+EXA+-+GG+-+EN+-+PC_%7C_Hydrogen+Fuel+Cell_%7C_fuel%20cell%20power
The level of rude & crude in yr reply is self-sufficient evidence of yr character such that I will not comment on it, other than to observe it, along with all the syntactical and grammatical errors, which bespeak both your educational attainments and the professional background you boasted about.
As to my education and whatever bona fides you care to attach to the educative processes, such as they are, I am a lifelong autodidact, for, as Mark Twain observed about himself, “I made it a point never to let my education interfere with my learning.”
And finally for now, let us begin in a return to my first point: that “…I have two top-ranking physicists as friends, but neither one can adequately answer my question, “What do we do with the waste?”
One graduated from Cal Poly, and had a lifelong career in oil and energy industries as well as a parallel one w/the CIA; the other is a senior research physicist who is currently Prof. Emeritus in Quantum Physics @ the U of Victoria, has published more than 200 papers, and received the Order of Canada for his work. Yeah, these are the kind of people I hang with, and they seem to have enjoyed that association over the last twenty-something years.
My point is that as brilliant as both of them are, neither has a definitive answer to the disposal problem in regard of its ultimate safety in transport and final disposal. But as you’ve stated your high competence as an engineer, perhaps you can now give first us, and then the world, the long-awaited definitive answer[s] to that problem.
By the bye, my oldest daughter is a civil engineer, and she’s never been able to determine an answer either, and as a mother of three children under six, Fukushima concerns her gravely, as she lives on Quadra Island, here with all the rest of us, riding it out on the ocean currents and jet stream above.
Go ahead, we’re waiting….
Evidently neither has heard of Molten salt reactors that use the existing nuclear waste that they are right we have no way to store permanently. But you don’t need to store it if you make more electricity with it and reduce it to very low level waste that is no more radioactive than the yellow cake we mine right now. So this new low level waste can simply be buried. We use the high level waste for fuel, and there is lots of it to use so the issue of fuel for nuclear power is not an issue. You don’t need to mine uranium. Do some research yourself instead of quoting your experts. Given the question how can we safely store existing waste for centuries, they likely answered correctly – there is no good way. But you perhaps did not ask them is there another way to dispose of it by using it in new style reactors. They (hopefully) would have a vastly different answer.
Comment #20 refers you to http;//www.Bloom Energy.com which Myron Martin did not research or he wouldn’t make a comment like… ” I have my doubts that fuel cell technology is ready for the big time.”
Myron you have no excuse on this one because it was previewed twice on CBS’ 60 Minutes. You get a pass not knowing that I’m a Professional Engineer with 50+ years in the Energy business and using a moniker on this website.
Bloom Energy’s customers include: AT&T, Staples, Google, Fed X, Nokia, Honda Staples and many more. Is that big time enough for you Myron?
It is a shame Bloom is private now, otherwise as Texas Hold’em participants would say : I’M ALL IN !!!
Myron Environmentalists are disrupters trying to sent us back to the Middle Age Technology with “Bird Mashers” killing hundreds of predators and estimated 900K bats. US Fish & Game statistics–not mine. And accounting for less than 2% of all energy. Bloom will surpass that by 2020!
In response to Carbon Bigfoot I can only say, pardon me for having missed a couple 60 mn. shows, one person can not be up to date on everything. Perhaps my comment was not well worded, my point being that I was not aware of fuel cell technology being on the verge of wide scale acceptance/adoption. Many of these these things get HYPED beyond immediate investment practicality. As I have already noted, now that I am aware of the fact that Ballard Power is finally getting some stock market attention I will do some more research on the technology and if I find something that is investable I will report on it. By all means if you as an engineer have some information on possible fuel cell investments lets hear more from you, I can’t be all things to all people re possible investments.
Is there a viable fuel cell investment available? Thanks.
David: All you had to do is scroll up to 18 through the comments and you would have found this and more: ” Myron Martin, Special to Stock Gumshoe says:
December 15, 2013 at 2:29 pm
Fuel Cell Energy FCEL $1.78 may well be an up and coming technology to be considered.
Like Ballard Power Systems BLD-V I had an early interest in however, the stock has been essentially flat for years, but this past week FCEL did bump us almost 5%, so maybe it is finally ready to move. I have been tracking BLD for almost 5 years and it has had numerous false breakouts that ultimately went nowhere. but it likewise was up around 5% this past week, so maybe there is a revived interest in fuel cells. For the record, Ballard Power is up 14% in the past 3 months and 203% in the past 12 ,which is certainly a good return for anyone who had the courage to invest a year ago. Have not done enough research to decide whether I want to invest in either, but based simply on the charts, BLD @ $1.82 would seem to have the edge.”
My caution was apparently misplaced, I was wondering whether I wanted to invest in a company that was already up 203% over the past year and I admit I have not yet found the time to do an in-depth investigation of the industry, but this is certainly a good example of my recent quiz where I asked whether you should continue to invest in stocks reaching new 52 wk. highs? Here is your answer, the last statistics I have on Ballard Power BLD is a few days ago BLD reached $5.49, UP 241% in just the past 3 months. Had someone bought
at my original mention in Dec. they would have had well over a DOUBLE in a little over 3 months as the last price I recorded was UP 460% y/y compared to 203% in the original posting.
attn to GVP [[GSE GUIDE TOproper handling uranuim in short a training o w/ handbooks scale models etc
Fasciani I can tell your a screaming liberal that changes the subject like attacking my sentence structure rather than offering evidence of your position. As a matter of brain power, I am operating with half my parietal lobe as a result of three strokes. Most people that use blogs are more concerned with content than the formality of the King’s English. And I’m just happy I can communicate—with out mincing words–MY BAD.
I could give you a list of all the people I have associated with over my career but that serves no purpose.
The ECO-TARDS in this country pressured Washington to pull the plug on Yucca Mountain Depository without justification. Without Nuclear Power the energy required to support growth dooms us to become a Banana Republic. Ay and since your a Hoser it doesn’t effect Canukaville or does it?
The fact that you “hang” with liberal scientists does not qualify you to speak with any authority on anything.
Take a lesson in class from Myron Martin, who graciously took my criticism of his fuel cell post in the professional manner presented. I will look forward to exchange ideas and opinions with him in the future.
I feel sorry for the fear your daughter feels. I suggest she seek solace in the authoritative website http://www.accesstoenergy.com. Understanding ameliorates fear. And in your case stupidity.
For the record Mr. Bigfoot, I am a “screaming liberal” and a bonifide tree-hugging backpacking environmentalist. Some of us believe safe nuclear power with no high level waste is a reality already and just needs to be built out. Granted the Sierra club did not get the memo and lots of other progressive outfits have not done the research either to realize it and continue to push giant wind turbines instead. But alas they do slaughter birds and bats and pollute the air with low frequency noise that keeps some people awake all night up to even ten miles away. I oppose them outright but at the very least as a federal policy we need a required 10 mile setback from any inhabited structure, just as California wisely already has (in Europe it is 7 miles). Unfortunately here in Michigan there is no setback required and local ordinances allow them within 750 feet. That is already making some people sick here from insomnia (if you can’t sleep your body eventually gets sick from one illness or another). Then they try to move and can’t sell their home – often their life saving – and their lives are ruined. Try to sell a house in the shadow of a giant wind turbine. Can’t be done. Just tragic, and we subsidize these? and some of the liberals continue to push for more subsidies. Not all of us are blinded by the greed and rhetoric of the wind energy industry..
Safety doesn’t necessarily sell. The Candian CANDU Reactor operates at low pressure and is an order of magnitude safer than the US, Russian or Japanese reactors which operate at high pressure. But Canada cannot sell to those countries that protect their own technology, despite safety considerations.
As an aside,
If you’re “hanging your hat” on the end of the M to M agreement w/ Russia, then why did Sigma Labs ( http://sigmalabsinc.com/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=87&cntnt01origid=77&cntnt01returnid=59) press release they’re renewed contract w/ Los Alomos. Would they renew a contract like that if there were no longer materials to be processed? That contract is specific to the Russian agreement.
I will probably own Lakeland Resources before the end of the year as a lotto ticket.
Full disclosure:
I own Sigma thanks to a mention by an Irregular re; MEI which I also own!
Man this is a great group of people! Just glad to be part of it.
Depends on how long the contract. The term was not stated. If 5-years $178 thousand ain’t much. If 1-year, well, doesn’t it take at least 1-year to burn the fuel, even after the program has ended? Sigma’s 3D process produces human body flesh, right? lol
yeah! they make ears! LOL!!!
Seriously they do have a really cool exploding bullet technology that gives a .50 cal the effectiveness of a 20mm !!
Didn’t jump at Lakeland just yet.
This will add zero to my account not a zero. I’ll stick with clean energy technology like Clearsign Combustion CLIR ; Natcore in solar tech NTCXF; and FCEL in hydrogen fuel cells. I’m not a fan of nuclear power–perhaps because I live in an earthquake zone, but mostly due to radioactive waste with its very very long life.
Gee David, have you read any of the posts above? What does it take to assuage your fear of nuclear power? We already have reactors that use the existing nuclear waste for fuel, reducing it to such low level of radioactivity (like yellow cake) that there is no storage issue – you just bury it. New nuclear power plants ARE THE ANSWER to the existing long life nuclear waste problem. So if that is the problem you see then you should be a huge fan of breeder reactors or molten salt reactors that get rid of the existing waste and turn it into power with no CO2 emissions. And in addition the newer reactors like thorium can’t melt down from an earthquake. Thorium reactors have to be constantly stoked to keep them going and shut down on their own if all the systems fail. I believe pebble bed reactors are similar and simply can’t run out of control but are typically very small units that could supply say a factory with clean power . What is not to like about these new reactors? The only reason we have these dangerous light water uranium reactors is because they produce weapons grade plutonium so we built dangerous reactors that produce waste we can’t store forever just so our military (and those of other countries) could build bombs. Just build other styles of reactors and your fears are no longer relevant.
Too bad the majority of comments here were drawn to the sociopolitical polemics around Nuclear power and not to discussing the core topic – which was “Which Uranium Stocks Will Outperform in A Renewed Uranium Bull Market”. Excellent comments and guidance from Myron Martin. I too rode the Uranium bull market up from 2004-2007. Sold all in 2007 and then started scaling back in 2012. I’ve been early scaling back in so averaged down this past two years but I’ve been reading *everything* surrounding the build out of new nuclear power plants for a decade. There are *very few* real viable producers of Uranium around. The list of best ones is tiny – maybe a half dozen in all. Myron mentioned some excellent names that hint at the level of care he’s put into studying this sector. Was anyone paying attention and taking notes? There will absolutely be another very strong upturn in uranium producers and explorers. Uranium price and shares have been completing a long drawn out basing pattern the past six months. The board is set for the entire sector to stage another very sharp rise lasting the next 3-4 years. Has anyone looked at a group chart of the leading mid-caps names lately? They are all surging in unison. Kickoff is now – start of 2014. When Myron mentions this sector pay attention as it will be a focal point of surprising strength between now and 2017. After a decade in and around Uranium I see there are only a tiny number of names to choose from. Cameco and Uranium Participation are boring yawners, although they will do well. The big action is not in the super speculative names like Azincourt or Bayswater Uranium et. Al. Those are micro – microchip names that bear no comparison to the companies that will be surging with a strong sustained basis. Those names are just the peripheral fluff. Look to emerging producers like UEC, URG, Dennison and Energy Fuels. My personal top pick for a Uranium resurgence is Energy Fuels which looks primed for a massive run in the next 3-4 years. Excellent comments from Myron on this topic. I suggest people forget all the sociopolitical dead – weight baggage about Uranium and jyst keep a keen eye out for a concerted, sustained, increasingly massive rise across the board in all these shares. I think it will be a gradual rise in 2014 (they all at least double) followed by blistering rises all through 2015-2017. Myron ‘ s suggestions in this area will be proved in retrospect to have been very valuable.
Athabasca Basin explorers very valuable and leveraged to Uranium (e.g. Fission) but IMO the small and mid-tier producers – transitioning to larger producers, are an excellent spot for outperformance. Explorer UEX holds an incredible land package as does URZ. Better names to look at (in no particular order) FCUUF (aka. FIS.V in Canada), URG, URZ, UEC, DNN, UEXCF (aka. UEX.TO), UWEFF (aka U308), UUUU (aka. EFR.TO), PALAF (aka. PDN.TO troubled but with +++ potential), EGRAF (aka. ERA.AX also troubled but w. Potential), LMRXF (aka. LAM.TO). Best names for large potential rises are (explorers) Dennison, Fission and UEX, and (producers) Energy Fuels, UEC, Paladin, URZ and URG. Paladin troubled by large debt so more speculative but it’s got massive potential production growth when Uranium price begins renewed rise. Energy Fuels seems outstanding. It is beautifully hedged against current shot term low U prices but can grow it’s production from existing permitted mines *sixfold* as soon as U price starts to recover. Energy Fuels seems positioned best of all. Massive existing standby production all ready to switch on, completely hedged against low prices, very solid balance sheet, just gobbled up Dennison’s uranium mill in the US and all of Strathmore Uranium assets for peanuts (small change relative to pounds in the ground). Dennison also seems by a long chalk the most powerfully positioned of all the explorers. Summary – DENNISON and ENERGY FUELS the two most conservative yet also aggressively positioned of all these names. Bookmark them all and watch them closely this year.
Thanks Lukester, tend to agree and admit I did not give Dennison the emphasis it deserves, even though I have owned it for some time and recently added more. Will probably have to do an update on the uranium sector in a couple of months as there are at least another half dozen not well known companies in the Athabasca Basin I have not had time to take an in-depth look at. The other point I want to emphasize is that it is okay to have some “dead money” in a promising sector for a few months at least as opposed to belated climbing on the bandwagon when the train has already left the station.. Boosts in price can happen literally overnight when significant drill results or major discoveries hot the news, you want to be positioned well in advance to get the maximum benefit.
Lakeland Resources mentioned by Myron not too long ago has been doing well. Just a few days ago, a nice write up entitled “Bright Starts in the Athabasca Basin Uranium Hunt” appeared in Seeking Alpha. Thanks Myron!
Agreed. I missed that one. A lot more speculative than Dennison and Energy Fuels but Lakeland absolutely deserves a mention. But when you start to dig into these names it becomes apparent that Dennison and Energy Fuels will be two of the most valued names. They are the ones that are both conservative and also aggressively positioned. If I had to drop all my shares and only keep two it would be these two. Dennison the Premier explorer with all the choice holdings in Athabasca Basin, and Energy Fuels the junior producer transitioning most securely to mid cap. It’s the largest Uranium producer in the US (just completed a 50/1 reverse split so use the Toronto shares to understand what’s happening in the price action). UEC would be maybe the next best producer but nowhere near as much production growth as Energy Fuels. Fission Energy would be my next best pick after Dennison but Dennison is the absolute champion among the Athabasca explorers. Both Dennison and Energy Fuels are prime takeout targets for Cameco, Rio Tinto or Areva. Hope Travis covers the Uranium more in 2014 because it looks prime to turn into a super – nova sector. Myron gets it.
My suggestion is very simple: BE CAREFUL when investing. Also simply put “Add a zero to you net worth…” could be said…$0.00 net worth!!! This is what could happen to your money by adding a $0.00
Be right and sit tight.