URNM: The Demand For Uranium Continues To Grow

(6min)

Summary

  • I remain bullish on the Sprott Uranium Miners ETF due to strong industry fundamentals, though I now rate it a buy after a 50+% recent run.
  • URNM and URNJ offer the purest exposure to uranium miners, ETFs like URA and NLR include non-uranium holdings.
  • Recent performance has been relatively good, with URNM up 35% over three years and outperforming uranium spot and contract prices since inception.
  • I expect uranium miners and spot prices to continue rising, making URNM an attractive long-term investment despite recent gains.
  • Looking for a helping hand in the market? Members of Off The Beaten Path get exclusive ideas and guidance to navigate any climate. Learn More »

West Burton power stations, UK

CHUNYIP WONG

Overview

The Sprott Uranium Miners ETF (NYSEARCA:URNM) is a uranium pure-play investment vehicle that invests in all the key uranium mining and uranium investment vehicles in the market today.

I have covered the ETF with long articles

If you like this article and are interested in more frequent analysis of my holding companies, real-time notifications on portfolio changes, together with macro and industry analysis. I would encourage you to have a look at my marketplace service, Off The Beaten Path.

I primarily invest in turnarounds in natural resource industries, where I have a typical holding period of 2-3 years. Focusing on value offers good downside protection and can still provide great upside participation. The portfolio has over the last 6 year had a compounded annual growth rate of 28%.

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This article was written by

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Bang for the Buck has a Bsc and Msc in Financial Economics, manages a small investment company, and runs the investing group Off The Beaten Path. He primarily invests in turnaround stories and is currently focused on natural resource industries due to monetary and fiscal policies together with underinvestments and very attractive valuations.

The investing group focuses on companies with quality characteristics that are trading at depressed valuations, which allows investors to participate in the upside of natural resource investing, without experiencing the more extreme drawdowns, that are otherwise so prevalent in natural resource investing. Learn more

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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