dancing on uranium?s grave..but it ain?tt dead, page-2

thumbs up HangSeng

i like this bit......

It has hardly been dented by everything the world has thrown at it this year - and that tells you everything you need to know about the future of nuclear energy. It is not going to go away.

But with uranium investors running the other way regardless, uranium stock prices have been - and there's no other way of putting it - kicked in the plums.

We have some great junior uranium stocks on the Aussie market, and it is just spectacular how much the price has come off in the last three months.

Yet the underlying fundamentals haven't changed! If anything a few of the lower quality projects may fall off a cliff because of this - and make the fundamentals even tighter.

This is when smart investors need to get their grave-dancing shoes on.

The road may not be easy at first, as we may not be at the bottom yet. But at some point in the coming months, and I'm guessing pretty soon, we will see other bargain hunters coming into the market.

And slowly, like a turning supertanker, we will, I'm sure, see the sector right itself and the price head north-east.

As editor of Diggers and Drillers, I sat on my hands last year and watched the uranium market, not quite convinced of it. The shortage in the uranium market doesn't come until 2013, and 2010's rally looked like a false start to me.

One year on, that deficit in 2013 is getting palpable.

Coupled with the bargain prices we are looking at now, we should see uranium stocks start to rally in the second half of this year.

And this time I reckon it's got legs.

Dr.Alex Cowie
The Daily Reckoning Australia