Seeking Alpha

Investing In Uranium - Bull Vs. Bear + 5 Uranium Stocks (Video)

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Includes: AZZUF, CCJ, NXE, URA, URPTF
by: Sven Carlin
Sven Carlin
Growth at reasonable price, long-term horizon, book author, Fund Manager
Summary

The bull thesis for uranium is strong; growing demand coming from Japanese restarts and developing Asia, alongside production cuts.

However, uranium prices are still low, so there must be a bearish thesis out there too.

I discuss Cameco, Kazatomprom, Uranium Participation Corp, Azarga and NexGen Energy from a risk and reward investing perspective.

Uranium prices have been subdued for more than a decade now. However, there are many uranium bulls calling for the perfect storm due to production cuts and expected demand growth.

I did a bit of preliminary research to see what is really going on and found lots of contradictory info. This led me to make 3 videos on uranium. The first describing the uranium bullish thesis. The second countering the bullish thesis with a bearish thesis and consequently and the third, analyzing 5 uranium stocks to get a better perspective on what is the actual risk and reward when it comes to investing in Uranium.

Investing usually boils down to buying investments with positive asymmetric risk and reward. So, it is important to pair the potential risks and rewards to an actual stock price. At the end, it is up to you to decide how the risk and reward fit your portfolio, but be sure to know the risk and rewards before investing in anything. Enjoy the videos for more information.

The bullish thesis video content:

0:47 Uranium price

2:18 Production cuts and demand growth

3:18 US procurement quota of 25%

3:35 Uranium growth story

The bearish thesis video content:

0:30 Conservative energy growth estimates

1:44 Ageing reactors

3:39 NexGen's project and production cuts

4:46 At the mercy of the Kazakhstani Government

5:13 Cost curve

Discussing 5 uranium stocks:

0:00 Uranium ETF (URA)

0:50 Cameco (CCJ)

3:15 Kazatomprom

4:51 NexGen Energy (NXE)

6:46 Azarga (OTCQB:AZZUF)

8:00 Uranium Participation Corp (OTCPK:URPTF)

9:08 Investment thesis

If you enjoyed the videos, my, possibly objective, risk and reward perspective on investing, please consider subscribing.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.