u stocks will bounce back

I think uranium stocks will bounce back in the next few days, once the sell-off by the U.S. Gov of its U stocks is put into perspective.

In my view, these are the main points:

1) The U.S. gov has 135 million pounds of uranium.
2) It wants to sell 5 to 6 million pounds per year. It will most likely sell by long-term contracts to a few users in the U.S.
3) 2005 consumption of uranium was 180 million pounds.
4) 2005 production of uranium was 108 million pounds. There is a very large shortage of supply.
5) It's unlikely the spot price of U will be affected much, if at all, in my view, by the small amount being sold off.
6) There are at present 27 new nuclear plants being constructed with many more in the pipeline especially in India and China (as well as in the U.S.) - demand will continue to grow.

The present drop in price represents a unique buying opportunity in my view.

Best,

Det