The Uranium Sector Is Heating Up
One of the sleepiest sectors in energy has been uranium, which is the power behind nuclear energy, but that has already started to change, says Jeb Handwerger of GoldStockTrades.com.
At the end of 2012, I was interviewed on uranium and indicated to investors to accumulate as the uranium miners and the uranium price hit three-year lows.
The pullback in uranium miners and price coming into year-end was a potential buying opportunity, as they reached important support levels historically indicative of a bullish reversal. I also warned of an increase in merger and acquisition activity in the undervalued uranium sector, as there are many discount opportunities trading at ridiculously low levels.
This was at a time of great pessimism. Despite being ridiculed by the popular media, our readers were bullish and in fact they believed that may have been the "Post-Fukushima" bottom. We are witnessing a powerful rebound in the uranium price and the uranium miners as measured by Global X Uranium (URA).
Last week we heard that Uranium One (SXRZF) will be bought by ARMZ, its controlling shareholder, for $1.3 billion in a friendly deal. This means the Russians will have an increasing presence in the Powder River Basin.
Putin is pushing nuclear power not only for Russia, but to export technologies to emerging atomic nations. A few months ago, we predicted a growing Chinese and Russian role in developing domestic US assets.