u is back!

http://www.discoveryinvesting.com/uploads/MNs_Tuesday_October_30__2012.pdf

"A recent headline in the Financial Times confirms what we had been anticipating for some time:
“China to Restart Nuclear Programme”

With an emerging markets push towards increased nuclear power, this is decidedly good news. It bodes well for uranium producers over the mid to long-term. Chinese authorities undertook a hiatus to implement stringent safety standards in the wake of the Fukushima disaster. One of the main takeaways is that nuclear plants in China are now required to be built with “third generation”, or Gen III technology. This was mandated in the name of safety and is good news for companies such as Toshiba and Areva who pioneered this technology, according to the FT. China plans on establishing 40GW of nuclear power capacity by 2015 –
two and a half years from now – which would be three times current production.

In other news concerning China “going nuclear,” Reuters reports that China Guangdong Nuclear successfully raised 1.5 billion yuan ($240 million USD) through a dim sum bond3
offering. The article states that the offering was four times oversubscribed – more evidence of the belief both inside and outside China of a renewed push towards nuclear power.

Aside from China, countries such as the UAE, Saudi Arabia, and Poland have all renewed their commitment to nuclear power recently.

This is a clear indication that nuclear power has a positive future.

To be sure, there are threats to nuclear power including waste management/disposal, the boom in massive shale gas, several countries threatening to phase out nuclear generated
electricity, and the current low spot price of uranium rendering many exploration projects uneconomic. The U3O8 spot price stands currently at $46.50 per pound. While each of these concerns has credence, here is why we like uranium going forward: "

more....