Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Uranium Mining Stocks Grossly Under Perform Oil Stocks

Commodities / Uranium Aug 08, 2007 - 09:22 AM GMT

By: Greg_Silberman


Uranium mining stocks once the darling of the resources sector have come off the boil. Is this a trend change or a pullback in a very overheated market?

Until recently the market has been going gaga over uranium mining stocks. Some say it was classic bubble syndrome. New floats were coming to market at huge premiums and non-resource companies were rebranding themselves as Uranium explorers.

Fast forward to the present and we find the Uranium sector has gone through a significant correction. Is this a change in trend or a healthy pullback?

What's surprising to us is that the correction in Uranium stocks has been more closely aligned with the correction in Gold Stocks than with Oil Stocks (which have continued to march higher). We think this is due to the fact that Gold Miners have significant Uranium deposits and that the fundamentals behind the Uranium Bull market are not fully understood.

If this is the dawn of a new era in energy it's not apparent from the miserable underperformance of Uranium Mining stocks versus Oil Stocks.

Chart 1 - large cap Uranium mining company Cameco versus Exxon Mobil (blue)
large cap Uranium mining company Cameco versus Exxon Mobil (blue)

It seems not all forms of energy are born equal!

Admittedly Uranium Stocks have seen a BONANZA over the last 2 – 3 years which has caused them to become more speculative than their Oil counterparts. It stands to reason therefore that a correction in Uranium stocks would be deeper and more painful than a correction in the rest of the energy patch.

But now that the speculative frenzy has dampened and we can finally pick up Uranium stocks at reasonable prices, we need to ask ourselves, what's changed?

The answer: not much.

The long-term arguments against fossil fuels become more compelling by the day:

• Abnormal weather patterns are becoming the norm (?) take the recent floods in the UK as one of many examples. Global warming is a reality and burning carbon fuels is the cause;

• Geopolitics are showing no signs of improvement. The next energy source must be located outside of the middle east mayhem;

• Growth and industrialization in China, India and the rest of the world continues at a fierce pace. Current crude oil prices are reflecting this dynamic and continue to surge whilst stock markets falter.

Nuclear is probably the only viable alternative to help alleviate the coming energy crisis both in time and in magnitude.

For the smart investor with a time horizon longer than a year, this is a great time to pick up quality uranium mining stocks at reasonable prices. We have been active buyers ourselves and have been recommending the same to our subscribers.

More commentary and stock picks follow for subscribers…

By Greg Silberman CFA, CA(SA)
Profession: Portfolio Manager and Research Analyst
Company: Ritterband Investment Management LLC

I am an investor and newsletter writer specializing in Junior Mining and Energy Stocks.

This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.  

Greg Silberman Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


08 Aug 07, 10:08
uranium stocks

How much further down do you see the uranium stocks to go?

08 Aug 07, 10:32
Uranium's Future

It is great to read this because, as an investor, my return on investment is going to take a while. This might speed things up. If you want more information on the specifics behind Uranium stocks, i recommend this report.


08 Aug 07, 20:36
Uranium stocks

It's obvious that Uranium juniors have not yet found a bottom. I would hestitate to say at what level a bottom will be reached but it could be when the spou begins to stabilize. Overall, we're back at spring 2006 levels on most issues. I wouldn't be surprised if we see another 50% drop from current values. This was the level where the uranium issues began to be marketed generally and the market was devoid of speculators. The current collusion amongst utilities could keep the spot market down at least for another 14 monthe when the buying cycle would have to be replaced with additional material.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in