UUU is one of the largest uranium producer in the world and is now into oversold territory.
At 2,18$, i expect a major rebound within the next week or so. The 52 week low being at 1,85$ and major support at 2,10$ the possible downside is very low on this one.
They will be reporting results on august 14th and i think that it will be good. Not great results but better than last year with an increase in production.
Their production guidance have been re-affirmed in May and with many hundred of new reactors being at some phase of building, the demand will not go away for Uranium BUT the supply will diminished in the coming year. Many states will try to put their hands on Uranium and will have prices settle well over 60$ in the near term (it trades actually around 49,50$). This will increase sharply the gross profit of the actual producers and even if news guys come on the block, the time needed to build infrastructure will not be a factor to lower price.
So at actual level, i am in and will continue to add on dips.
As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
At 2,18$, i expect a major rebound within the next week or so. The 52 week low being at 1,85$ and major support at 2,10$ the possible downside is very low on this one.
They will be reporting results on august 14th and i think that it will be good. Not great results but better than last year with an increase in production.
Their production guidance have been re-affirmed in May and with many hundred of new reactors being at some phase of building, the demand will not go away for Uranium BUT the supply will diminished in the coming year. Many states will try to put their hands on Uranium and will have prices settle well over 60$ in the near term (it trades actually around 49,50$). This will increase sharply the gross profit of the actual producers and even if news guys come on the block, the time needed to build infrastructure will not be a factor to lower price.
So at actual level, i am in and will continue to add on dips.
As usual (and more actually) DO NOT INVEST MORE THAN YOU CAN AFFORD TO LOSE and always do your own due diligence before investing in any stock. CHEAP SHARE PRICE does not necessary mean a real bargain. Play with extreme caution.
Get THE PLAY OF THE DAY on Twitter : @investman2
Aucun commentaire:
Publier un commentaire