afr article

The weekend AFR has a full page article on the boom in uranium stocks. (page 44)

A fund manager believes that the price of uranium will settle between $40-70 USD after the introduction of the NYMEX futures contract in May.

Interesting, ... he believes that the transparency that the futures contract will add will make some take short positions and force the price down.

It will be interesting once the demand level increases and supply remain fixed (or fall) where the utilities will get their U from.

This boom is driven by time proven economic principles - supply & demand. It is not the tech boom revisited, which had no compelling fundamentals., Sure it may overblow a little, but at the end of they day utilities need DELIVERY of U to maintain production. Some short selling speculators and not going to be able to just front up with a pallet of yellowcake and drop it off at the futures market for collection.

Supply & demand are the fundamentals that underpin this boom imo, and near term producers will do very nicely out of this in the long run, period.