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Bathtub Deep Dive

It’s no secret that I’m bullish on the uranium sector. Nevertheless, my confirmation bias keeps getting triggered, especially when you measure uranium not just against weak currencies like the USD and EUR, but against hard, “inflation-adjusted” benchmarks like gold. Since 2011, a massive base has been building up here. As the saying goes, “the bigger the base, the higher the space.” These are questions you have to ask yourself if you want to invest in assets that outperform gold.

But of course: this is not investment advice 🐊

$URA (-4,54%)

$UEC (-3,98%)

$UUUU (-4,02%)

$CCO (-8,84%)

12 Commenti

Johannes@Johannes12345

I’m also invested in $UEC and $UUUU. Both are currently down about 30%, but I’m going to take advantage of the opportunity and add to my position a bit. I see a lot of long-term potential in $UUUU in particular, though of course there’s risk involved. They’re not just focused on uranium but also on critical raw materials and other sectors. If the acquisition of VAC goes through, then in theory they’ll cover the entire production chain for custom magnets, and margins should rise significantly once it’s implemented and rolled out. Let’s see (and hope 🙈😅)!

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Stocktective@Stocktective

$CCO 's stock recently dipped below 70, and I almost jumped on it—I've actually reached my target price for buying more. Now the question is whether to wait for the earnings report or not 😬

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Dirty30@Dirty30

@Stocktective In my opinion, earnings for uranium stocks are just as irrelevant as they are for crypto stocks. Usually, even unprofitable “junk” stocks surge when the entire sector is on the rise. At least, that’s my impression.

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Dirty30@Dirty30

@Stocktective It's also interesting that the $URA bounced right off the 200-week line. I always find it mysterious how precisely it reacts at levels like that.

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Stocktective@Stocktective

@Dirty30 That’s kind of true, and if their results turn out to be “bad” for a solid company, the downside is limited. Right now, the sector is also trading high because $CEG was promised $5 billion in capital for the retrofit. I also recently added to my position in $NXE, and I’ll probably buy a little more Cameco before earnings are released.

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Dirty30@Dirty30

@Stocktective Yeah, there's a lot going on in this area. $UEC is now also an official supplier to the U.S. Department of Defense. So this is going to get interesting, especially when we eventually have to provide baseload power to those energy-hungry data centers.

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Stocktective@Stocktective

@Dirty30 Yep, I'm also bullish in the long term. Based on what I've been hearing and seeing, I'm investing a certain portion of my money in this sector and continue to add a little more.

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Dirty30@Dirty30

@Stocktective I think so, too. You have to look at the long term. As far as I'm concerned, the sector remains bullish, but I would still say that these kinds of commodities aren't suitable for buy-and-hold investing. There will always be periods where these kinds of assets undergo corrections lasting 15 to 20 years—see the period from 2010 to the present.

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Stocktective@Stocktective

@Dirty30 Yes, we could definitely see another 1–2 good decades ahead. As for $CCO, I’m curious to see how the Westinghouse story unfolds—whether it will lead to an IPO and a spin-off, or whether it will be deeply integrated and possibly expanded. In that case, I could even see Cameco as a long-term blue-chip stock in my portfolio; a solid installed base in a sector like this is valuable—provided the expansion and retrofitting in the industry continue at this pace.

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Dirty30@Dirty30

@Stocktective Yeah, that could very well be the case. It is, after all, the largest and most stable asset of them all.

If the 2030s turn out to be a lost decade for the S&P and Nasdaq, those are usually the periods when gold, oil, and other commodities perform well. The returns on oil, gold, and uranium from 2000 to 2010 were insane—in some cases 5 to 10 times the initial investment.

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Stocktective@Stocktective

@Dirty30 Of course, I’d like that too 😁 I’ve deliberately allocated about 20% of my portfolio in that direction, and the setup for such a cycle actually doesn’t look bad at all—at least when it comes to uranium, I’d say. I’m not sure about oil, but since every bit of energy will be needed if it comes to that, it’s very possible. Let’s see what the future brings—I’ll definitely stay invested.

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Sebbster@Sebbster

@Dirty30 Hi, which uranium stocks have you invested in?

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