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September 1, 2006

Uranium research expanding, Fri., Sept. 1, 2006, 4:22 PM

Deutsche Bank has initiated coverage on Uranium. Download DB Sept 1 report on Uranium.

As you know, I think the world needs to go nuclear, and will. The Cara 100 plays are Cameco and Exelon. One is a utility and the other a miner that I just like to put in the utility category for some reason.

Cameco Corp [GICS 55, Cara 100]
(CCJ: Yahoo Finance file)
(CCJ: StockChart chart)
(CCJ: Investertech chart)
(CCJ: ADVFN Financial Data)
(CCJ: ADVFN Financial Data)

Exelon Corp [GICS 55, Cara 100]
(EXC: Yahoo Finance file)
(EXC: StockChart chart)
(EXC: Investertech chart)
(EXC: ADVFN Financial Data)
(EXC: ADVFN Financial Data)

Posted by Posted by Bill Cara on September 1, 2006 04:22:56 PM | Category: 15 Materials , 55 Utilities

Discourse

Weekend trivia questions--Can anyone explain the dramatic decrease in gasoline prices this past fortnight (particularly in the Northeast USA)? Is it election year political manipulation? Or is there something legitimate at play?

Tropical Storm/Depression Ernesto arrived in the Washington DC area this afternoon. It is pretty dramatic! I can only imagine what it's like being stuck in the path of a full blowing Hurricane.

Have a great weekend all!

Posted by: oratier [TypeKey Profile Page] at September 1, 2006 5:54 PM [link]

oratier, the same phenomenal decrease in gasoline prices happened in Toronto. It started on Aug-7, and I made note of it on my blog. This development has zero to do with U.S. elections this fall, and has a lot to do with inventory plus futures trading markets.

With bond yields falling due to the fall off in inflation (making dividend paying stocks attractive), and fuel prices dropping, traders are thinking the glass is half full, and have started to buy up the market.

When interest rates turn around, inflation numbers look problematic, the improving govt deficit takes a turn for the worse, the declining housing economy starts to make waves through the whole economy, and so on, then prices will come back down.

But the key is to watch a complete cycle before making your full assessment.

I have written three numbers for the Dow long-term cycle low (within six months): 10170, 9430 and 8680. These are the fib numbers. They will only change if the present run up exceeds the May 10 cycle highs.

Posted by: Bill Cara [TypeKey Profile Page] at September 1, 2006 6:31 PM [link]

Re: "This development has zero to do with U.S. elections this fall"

Bill,

Thanks,

Appreciate your common sense assessment. Lots of cynics (myself included) love to blame politics when we can't explain the explainable.

Have a great weekend.

Posted by: oratier [TypeKey Profile Page] at September 1, 2006 7:03 PM [link]

Bill,

Thank you for the link to a great report from DB. (From my perspective as an independent financial advisor) its a definite read for anyone investing in the energy sector.

For the past 30 years the Big Oil lobby, arguably the world's most powerful lobby, has effectively suppressed the growth of nuclear energy resulting in low uranium prices, and the retardation of technological advancement. I have never believed that nuclear waste was an insurmountable problem. There was just no incentive for the industry to recycle waste products. These stockpiles will be a valuable resource in this century.

IMO the rapidity of climatic events attributed to global warming in the years to come will reach a point where public and scientific debate will overcome the Big Oil lobby. It may take a few years, but the pendulum will swing to massive applications of new-generation nuclear power with all of the attributes named in the DB document.

There are genuine opportunities here for those who are investing with vision.

Posted by: TerryC [TypeKey Profile Page] at September 1, 2006 10:32 PM [link]

Bill,

was not sure where to put this comment. No direct email address for you. In the Cara 100 table, Nucor has a Ticker of NEU instead of NUE. Seems to be an error.

Posted by: EBNuc [TypeKey Profile Page] at September 3, 2006 12:34 PM [link]

Dear Bill,
Nuclear power is virtually emission free in terms of greenhouse gases. The fuel used has almost no impact on world resources.

Posted by: IdaRed [TypeKey Profile Page] at September 6, 2006 1:18 PM [link]