3 Glowing Uranium Stocks
In the face of fluctuating energy prices and changing regulation, going nuclear may be a good strategy for you. Energy analyst John Manfreda tells MoneyShow about investment opportunities in natural gas and uranium, and gives his view on where oil is headed.
Kate Stalter: Today, I am speaking with John Manfreda of Wall Street for Main Street. John, you have done extensive research and analysis into the energy sector, so I wanted to talk with you about that today.
Maybe we could start with oil. There's not a whole lot of hoopla from Congress when oil prices go down. But when they go up, there tend to be cries for investigations about speculators, and then it dies down when the prices go down again. Talk a little bit about what you're seeing there, and maybe even how political motivations play into whether attention goes to that sector or not. Give us your outlook right now.
John Manfreda: Right now, I would say it's coming right up from its short-term lows of $80 per barrel. There's always hoopla because the voters don't like paying for more at the pump, and so politicians always try to capitalize on whatever political goal it has, regulating the Mercantile or Chicago Exchange, or taking over businesses or whatever.
Right now, what I see is oil will be up slowly but surely. Right now, it's hard to determine where it's going to go in the short-term, because the market is pricing in the depression in Europe, they're pricing in a faltering economy in the US. If you look at the oil stocks, compared to the oil price, they're lower by three standard deviations.
If the current price right now is looked at as the new normal, which I think it is for numerous reasons, then the oil stocks-despite oil prices going flat-the oil stocks, I think, will go straight up soon.