When the YTD consolidation period of #uranium stocks unravels, I'm betting on a high momemtum move. Odds are we're getting a commodity price rerate period, which will cause stocks to start discounting +65$/lbs into the share price. Stocks lead the price, and have risk discount...
...which is why they might seem to have a LOT of upside to fair valuation with commodity price at +65$/lbs. They do, if the risk will be mitigated. My fair guess is the spot will exceed last great bull cycle highs, and duration of the cycle will also exceed the last one.
No one will time the bottom and the top right. Be prepared and have an exit plan on your uranium equities. There is a fair chance that spot will overrun the equities at the end, thus making physical investment vehicles like $U and $YCA good places to cycle profits in.
I believe this is what hedge funds will do. They buy physical through these physical funds or straight to cause the rerate in U price, ride the equities, cycle the profits to physical for euphoria peak until equities dont follow, exit the equities and exit the physical.
I won't wish luck for anyone, because it seems we don't need luck. Have a good basket of u stocks at your portfolio and after few years you'll see why. Fundamentals are at our side, time is still at our side and most of the investable equities survived the bear. We'll be fine.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
