Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
You're still quite bullish on Uranium stocks. However, the value of my holdings has halved over the last few months, which isn't exactly what I'd call a 'dip'. It's a considerable pullback and the spot price has been stagnant or negative for the same length of time. Why do you think investors are so wary of a sector that has such an undeniable supply/demand situation? Equity prices, on the ASX at least, just don't seem to reflect the reality of the circumstances.
Hi David,
There have been a couple stock situations which have caused significant underperformance by a couple of major ASX uranium stocks:
However both of these pullbacks, from top to bottom are only 33% and 38% respectively, we caught the PDN falling Kinfe a touch too soon. Uranium ETF’s are only down ~15% so it has been a tough time for the sector but we continue to regard it as a buying opportunity. The crux of your question shows the volatile nature of the sector, so positions should be sized accordingly.
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