It’s Saturday morning, and while the kids are still sleeping, Cindy and I are still putting together the Easter baskets.
But I’m also thinking about uranium. I can’t keep my mind off it for a simple reason:
The gains I’m already seeing in uranium stocks are so large — and the potential for even better results is so great — I decided to stay up late last night to write you about it in depth.
Look. Last October, I issued a special report with seven uranium stock picks. And now …
Even the worst of my picks is up 30.6%!
The average gain of all seven picks is 106.9%!
And FIVE of the seven have triple-digit gains — 100.3%, 124.6%, 144.9%, 148.9% and 156.8%.
But in my view,
You Ain’t Seen Nothin’ Yet!
Heck, all of these gains happened in just six months time. And everything I see — plus everything I’ve been reporting to you — is demonstrating that this industry has years of rapid growth ahead.
Here’s the kicker: My October uranium report was dedicated to the larger uranium companies. But now, I’m getting ready to send out my second uranium report on the most powerfully leveraged, smaller-cap uranium companies that I could find.
You know that I cannot guarantee results and that losses are also possible. But if you think the gains in my seven larger cap picks are impressive, wait till you see the potential gains on the smaller cap picks in my second report!
I’ll tell you more about them in a moment. But first, let me remind you why uranium stocks are so hot:
Uranium Price Surges from
$20 to Nearly $100 Per Pound
Here’s Why It’s Just Beginning …
Uranium has experienced a dramatic, nearly five-fold price gain!
It has done that in just a little more than two years!
It has emerged as the best-performing major commodity in the world.
And all for good reason: Demand is rising with great speed and consistency in the wake of a massive energy revolution that’s sweeping the globe.
In 2005, even before the latest demand surge, about 16% of the world’s electricity came from 440 nuclear reactors. That required about 80,000 metric tonnes of uranium.
But mines only supplied about 46,720 tonnes. The rest was covered by inventories, according to data from the Uranium Information Centre. And those inventories, in turn, came mostly from reprocessed Russian nuclear weapons — a program that is slated to end in just a few short years.
This year, uranium demand should hit 83,007 tonnes, while mine production will only hit 53,070 tonnes, according to data from Cameco.
Meanwhile, there are 28 reactors under construction around the world and many more being planned: Japan intends to add 11 by 2010. China hopes to add as many as 30 by 2020. India wants to build up to 20 more. Russia’s energy goals call for at least 42 new nuclear reactors … perhaps as many as 58!
A new one-megaton reactor takes a first fill of uranium of about 600 tonnes, then consumes 200 tonnes a year.
Don’t forget about Uncle Sam, either. While the U.S. has 103 nuclear plants producing 20% of its energy requirements, it’s almost embarrassing how old the plants are.
In fact, there hasn’t been a new U.S. nuclear power plant ordered since the 1970s. But that’s about to change! There are about 30 pending license requests for the construction of new nuclear power plants in the U.S.
All told, scientists estimate that the world will need about 900 more nuclear power plants by 2050! Meanwhile,
Nearly All the Earlier Opposition to
Nuclear Energy Is Melting Away!
This is not just a matter of expediency. It’s based on solid reasons:
Reason #1 — Nuclear power is now safer than ever before. Passive safety features are built in that automatically shut down the reactor if there’s a problem — all without human intervention.
Reason #2 — Global warming. The U.S. government is finally starting to wake up to a threat that endangers every soul on the planet. As a direct consequence, nuclear power, which emits no greenhouse gases, is jumping into the limelight as a critical part of the solution.
Reason #3 — Energy Security. Reducing America’s addiction to foreign oil is a major priority of virtually everyone in Washington. They’re fed up with the fact that nearly half of the world’s oil is controlled by people with big chips on their shoulders, who don’t like us very much.
Nuclear power is the only alternative source of energy that has a real chance of greatly reducing our energy dependence. It can’t replace oil immediately. But with cheap nuclear power, I bet that in ten years or so, we’ll be telling some big OPEC countries to kiss our collective assets.
Reason #4 — Recession bounces off uranium like bullets off of Superman. Why? Because uranium is used for power generation, which is mostly immune to economic ups and downs. Even if people can’t afford cable TV, they’ll pay to keep their lights on.
What’s more, utilities plan nuclear power plants many years in advance. Once they’re up and running, you can’t turn them on and off like coal- or gas-fired plants. An atomic power plant demands to be fed!
Even during a commodity bull market like we’ve enjoyed the past few years, other metals like copper have had their ups and downs.
But look at uranium — it hasn’t even flinched!
As you can see from this chart (courtesy of UX Consulting Company), uranium hasn’t just been climbing over the last two years, it’s been accelerating!
Why the Global Supply/Demand
Squeeze Suddenly Got Worse
Utilities and other uranium users were already nervous about the supply/demand squeeze. Then disaster struck late last year when Cameco’s Cigar Lake Mine flooded.
Cameco planned to bring Cigar Lake online in 2008, with seven million pounds of uranium in the first year and full-scale production of 18 million pounds annually thereafter. Keep in mind, 18 million pounds is more than a tenth of last year’s total global demand of 171 million pounds.
That’s like the global oil market losing Saudi Arabia’s production! And now, Cameco says its deliveries of uranium from Cigar Lake will be delayed at least until 2010 — perhaps longer!
In 2008, uranium demand was already expected to exceed supply by 25 million pounds. With Cigar Lake seriously delayed, that gap will be 32 million pounds! Put another way — the shortfall in uranium is going to soar by 30%!
Sure, Cigar Lake will be brought into production eventually. But meanwhile, demand keeps building up. Uranium consumers around the world can see this squeeze coming, so the race is on. That explains why spot uranium prices basically doubled in the course of a year, and why stocks of near-term uranium producers vaulted higher.
And if you think the rise we’ve seen in uranium is big, just wait till next year! By 2008, we could see an all-out feeding frenzy. And smart investors like you who see that crunch coming, pick the right stocks, and invest in them prudently, should profit immensely.
The key is separating the dusty gems from the polished turds.
That’s why I fly around to meet with industry movers and shakers … the behind-the-scenes types who would rather stay in the shadows … CEOs and engineers of some great little companies … and guys with mud still on their boots.
And man, does this get results! You saw the gains of my seven picks — even the worst up 30.6% in six months! And now,
In my second uranium report, I have a whole new set of recommendations. And due to their smaller size and greater leverage, these picks have the potential to do even better.
Here’s a sneak peak …
Uranium Small Cap #1:
Near-Zero Production Costs!
This is probably one of the few companies in the world that can churn out tons of uranium without spending an extra penny to do it.
How is that possible? Simple: They mine another valuable mineral which totally offsets the mining, transportation and milling costs for the uranium ore, giving the company a cost base of zero on its uranium production.
Your price for a nice stake: 16 cents per dollar of uranium reserves.
Uranium Small Cap #2:
Rich Uranium Reserves for 26 Cents on the Dollar!
This uranium company has a very small market cap right now but, in the not-too-distant future, could easily be worth a billion.
What I find especially attractive is the fact that its prime properties were originally staked in the late 1960s and explored in the late 1970s. Then came the Three Mile Island disaster, and all that valuable data went into deep storage.
Result: The company has now inherited a detailed treasure map to some of the richest uranium deposits in the world.
Your cost to buy into those reserves: About 26 cents on the dollar.
Uranium Small Cap #3:
Growing Reserves and Bringing a Mine Online by 2010!
This small uranium wonder should go into commercial production in 2010, and yet investors haven’t discovered it yet. That’s a pity — for them — because this company is also growing its reserve base and has a crackerjack team with enough experience and know-how to take its properties from resource to mine.
Uranium Small Cap #4:
Better Global Diversification Than Some Large Cap Miners
When you’re buying a small, up-and-coming mining company, you usually don’t expect to get the kind of global diversification that’s associated mostly with mature, large cap miners.
But this small uranium wonder does even better: It has uranium resources on four continents — North America, South America, Asia and Australia. Its reserves aren’t proven yet, but should be at least 17 million pounds, probably much more. And you can buy a stake at the effective cost of just pennies on the dollar.
Uranium Small Cap #5:
The Greatest Story Never Told
I had to pinch myself to believe this one when I found it. This company’s team has about 280 years of uranium expertise — they can handle anything!
And right now they’re poring over the company’s HUGE database of drilling and survey data compiled in the 1970s and 1980s, by the oil companies that were exploring for uranium all over the Western U.S. at the time. The company is constantly drilling to expand its resource base and is working hard to bring its Texas and Wyoming mines to production.
Uranium Small Cap #6:
Europe’s Next Big Uranium Mine
After the Berlin Wall fell, this company scooped up old Communist-era uranium resources for pennies on the dollar. Now, it’s trading for about a TENTH of what its resource base is worth.
Here’s What I’m Going to Do …
On Tuesday, April 17, I’m sending my final selects — about six or seven — to a small group of disciplined, profit-savvy, investors, including very specific trading instructions. Exactly what to buy, at what price, how much … and why.
Next, I will send out regular follow-ups on each and every one of the picks for a full year.
Many analysts think they’ve done their job when they get you INTO an investment, but then they don’t stick around to help you get OUT.
That’s not my way. My philosophy of investing is that you’re in this game to take out hard cash for yourself. And never in my lifetime have I seen a better or clearer opportunity to do just that!
Why The Small-Cap Uranium Stocks
Are Delivering Far BIGGER Gains
The uranium market is growing faster than probably any natural resource market on the planet.
I told you how, just TWO years ago, uranium was trading at $20 per pound. Now, it’s closing in on $100 per pound — FIVE times more. That’s what I call jumping by leaps and bounds!
But the larger, stodgier uranium companies can’t jump that fast. It takes them time to explore and develop enough new mines. Even if they could move fast, doubling and tripling their existing revenues takes more time.
The small companies are a different breed. They’re in the vanguard of this boom. They’re the ones in the forefront of exploration and development. They’re the companies that the big behemoths are hunting down for potential buy-outs.
But these stocks are so small … so packed with potential … and sometimes so thinly traded, I must limit the distribution of my report to a small group of elite subscribers who have an appetite for big profits.
That’s one reason the price is $995, including my report and a year of follow-ups.
If you feel you can’t afford it, please don’t buy it. But consider this: Even the gains from my WORST uranium pick would have paid for the FULL cost of the package … and just after six months!
Moreover, as a loyal reader, you can get the complete package for a discount price of $595 … provided you sign up before April 17.
The toll-free number to call is 800-400-6916.
Just say you want “The Small Uranium Wonders” plus all my follow-up reports on all my picks. Or, order online at my secure website.
Best wishes,
Sean
P.S. Remember: By signing up before April 17, you get a double benefit: You will be among the first to get this information, giving you a jump on other investors. Plus, you will save $400. So I suggest you call 1-800-400-6916 right away.
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MONEY AND MARKETS (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Sean Brodrick, Larry Edelson, Michael Larson, Nilus Mattive, and Tony Sagami. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM. Nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical inasmuch as we do not track the actual prices investors pay or receive. Regular contributors and staff include John Burke, Amber Dakar, Kristen Adams, Jennifer Moran, Red Morgan, and Julie Trudeau.
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