I've been buying uranium equities for the past 3 years now as a long term/contrarian investment and after a brutal 11 year year bear market things finally look to be turning the corner. I've been studying this industry for years now and in the early 2020's the world is looking at a substantial shortfall of mined supply.
Some companies I like.
CCJ - Major blue chip producer
MGA, NXE, DML - Explorers and developers
UEC, URG, UUUU - Small cap producers (stable and based in the U.S)
URA - ETF tracking the entire industry.
The gains in this sector so far in 2017 have been incredible but I'm expecting a healthy pull back from the recent buying frenzy. Uranium bottomed out at 18 bucks a pound in Nov 2016 and it's recovered to ~27 bucks today. The uranium equities underwent their final capitulation phase back in Nov and have very clearly broke the trend line. Smart money and institutional investors have been pouring in.
If uranium gets back up to $65 bucks a pound then many of these equities will see a 5-10 fold increase if not more. It's a highly risky play, but the world needs nuclear power as a clean source of baseload energy. Looks at whats going on in the most populated cities in India and China, they are living through an environmental crisis the air pollution is so bad. These countries absolutely need more nuclear power because it provides around the clock clean energy. China's building reactors like mad, japan is working to bring theirs back online (albeit slowly) - other countries in the Middle East, Africa, and Asia are turning towards nuclear power.
Germany is shutting down all their reactors (8 more) by 2022 but that's because Merkel sold out to the green party, and who knows if they'll even be able to do that... don't get me started on the idiocy of germanys energiewende.
