Uranium has no scarcity value, and therefore precious little to offer long-term investors, David Olive writes.
Beware of the uranium bubble.
Investor enthusiasm for uranium stocks has increased their value by about one-third in the past few weeks.
They’ve actually been on a tear for a year. The latest bump followed Japan’s announcement last month that it will reopen nuclear power plants that have been mothballed since the 2011 Fukushima Dai-ichi power plant disaster.The planets seem aligned for a durable run-up in uranium stocks. But the fundamentals don’t justify today’s high prices. More on that later.Most major economies are building new nuclear plants and rehabilitating aging ones that were scheduled to close.Recognizing that wind, solar and other fossil-fuel alternatives won’t prove sufficient to meet their decarbonization goals, many countries have re-embraced nuclear as a source of clean energy after decades of shunning it.Russia’s invasion of Ukraine, and the global energy disruptions […]
Click here to view original web page at www.thestar.com
Posting Guidelines
- Do contribute something to the discussion
- Do post factual information, analysis and your view on company valuations
- Do disclose if you have an interest in a security
- Do take our Terms of Use seriously
- Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
- Do not complain about a post unless you have reported it first, and not on the forum.
- Do not post financial advice
- Do not advertise or post sponsored content
Get involved!
Get Connected!
Come and join our community. Expand your network and get to know new people!
Comments