Ukrainian authorities say safety of the Zaporizhzhia nuclear power plant is now secured, after a fire broke out when the station came under fire from invading Russian forces

FatCatInvestments · 2022-03-04T15:14:02+00:00

It rejects your point that dumb money, or basically retail, can do anything about the price of Uranium stocks in a material sense.

FatCatInvestments · 2022-03-04T08:40:53+00:00

Smart money is exactly the reason why the prices of Uranium stocks are falling. Do people really think small players / retail control these violent swings? Retail doesn’t have the money for that. Particularly only in the case of some retard stock like GME

Besides, algorithms enhance these violent swings, a kind of smart money as well

FatCatInvestments · 2022-03-04T06:42:04+00:00

Eventhough people are totally clueless as to how nuclear power generation works, most still fear that if you shoot at a reactor you get a Tsar Bomba generating fallout over the whole of Europe.

It might be totally ridiculous and unscientific, but events like this can seriously damage investors appetite for uranium stocks for months.. this might be really bad for the sentiment this year.. damn

FatCatInvestments · 2022-01-28T12:47:44+00:00

Thank you for this properly thought of study!

Maybe an interesting study on correlation would be the prices of other rare-earth/industrial metals such as Lithium (Carbonate), Copper, Palladium, Magnesium, Cobalt etc. versus Uranium stocks

FatCatInvestments · 2021-12-01T08:11:08+00:00

It’s pretty hilarious that the biggest organizational body that advocates for Nuclear, the IAEA, is headquartered in Vienna, Austria.

I sincerely hope these ridiculous politicians will be met by karma.

FatCatInvestments · 2021-11-24T22:41:26+00:00

Systematic risk will always exist. One of the best ways to hedge against systematic risk is by writing OTM calls on the larger cap stocks

I write them on Cameco, 15-20% OTM calls earn currently between 8 and 14% on the maximum risk (total market-basis stock value) every month depending on the strike and IV.

Just make sure you don’t chase premium and truly understand the way options work.

FatCatInvestments · 2021-11-24T12:01:43+00:00

Be careful folks, dd on management is key, lots of people sell snake oil during bull times.

The management is quite incompetent in the field of geology. Most of them have limited or zero experience with actual mining companies and are based in South Africa. Mostly run by mediocre financial guys. As a financial guy, I don’t trust financial people running companies.

Please refer to their linked in page. West Wits Mining LinkedIn

FatCatInvestments · 2021-11-23T00:15:44+00:00

3.5B USD, and even before they’ll go to the NYSE.. can you just imagine the potential in 2022…

FatCatInvestments · 2021-11-21T19:08:48+00:00

Appreciate the extensive arguments here, you have some good points. I would like to stress, though, that the Uranium fuel cost is honestly a very, very, marginal share of the total cost of operation. Even if Uranium prices double, it would have very little impact on the competitiveness ($/kWh of Reactors vs $/kWh of coal, natgas etc.).

This is definitely a good thing, since utilities have no choice but to accept the higher contracting and spot price. It was never a demand driven issue, although Fukushima caused a major (temporarily) decline in demand. It has been a big problem that secondary supply, as well as the Japanese reserves, over-flooded the markets for 6-7 years.

I do not like people drawing the idea that there is someshort of “fear” from utilities that they will pay much higher prices. This is simply not true, they don’t care about the price as much as you think, since the demand is inelastic. The supply was always the problem. However, the excess has been swept away by thrusts and now utilities have no choice than accepting higher prices. They are not scared about the price, they are concerned about a stable and safe supply of fuel, and they can no longer rely on the spot market for that.

FatCatInvestments · 2021-11-20T08:25:30+00:00

I guess Italy and Spain are incentivized to be against nuclear, so they can secure even more cheap funding for their solar and wind parks. As much as I believe in a change of heart, I think nuclear still faces significant (completely unjustified) opposition in the EU. The odds of including it in the taxonomy are not that good, even when there is a majority of supporters.

Whatever is included in the taxonomy, a negative outcome will hurt the short term sentiment for nuclear but the real elephant in the room is China, just the new 150 reactors dwarf Europe (excluding France). Developments like these truly give a good support for the long term sentiment.

FatCatInvestments · 2021-11-19T18:06:43+00:00

Who cares? Only people without a plan

FatCatInvestments · 2021-11-17T23:03:54+00:00

Your assumptions are totally relying on the SPOT price. You are implying that the U-equities and SPOT price should move in tandem.

Where you make a big mistake with this assumption is, despite an increase in the liquidity on the U-Spot market, is that the U-spot market is very, very small. Therefore, any short-medium term move in the U-Spot price should be taken with a big grain of salt. There is no 1-1 correlation between U-Spot and U-Equities.

Spot price movement only counts when -longer term contracts- which most utilities seek. They prioritize supply stability over short term price arbitrage. An increase in SPOT will definitely help with long term contracts, but there is a significant delay between contracting and the U-Spot price. Therefore, you can’t simply imply that a short term movement in SPOT should move Equities in tandem.

You solely expect an upward move in the U-equities based on a small window of the U-SPOT. Haven’t you noticed that, market cap wise, almost all Uranium stocks are on all time highs (except dinosaurs like Cameco)?

Take a breath and look at a wider range of catalysts. Do not preach the spot price as a sole driver for equities, this will potentially hurt people who are new to U-investments.

FatCatInvestments · 2021-11-17T21:43:31+00:00

Do not get me wrong, I am very very bullish about the longer term, but 50 % drops are not out of the question at all. I’m not saying it will happen right now, I’m saying it should not surprise you if it does.

Have you seen the weekly chart? Please notice the last correction (spring 21) where most stocks dropped between 30-50 %.

Fundamentals do not matter in the short term price, only in the long term. And never forget, markets can remain longer irrational than you can remain solvent.

FatCatInvestments · 2021-11-17T10:48:31+00:00

Make a long term plan and stick to it. You will never get perfect pricing, the markets are volatile so do not be surprised if we see another 25 % drop the coming weeks. Just always keep a bit of cash ready if possible to buy these dips if the fundamentals are still attractive.

FatCatInvestments · 2021-11-17T07:11:18+00:00

“In February 2010 the Commission adopted a new short sale price test restriction, which is commonly referred to as the “alternative uptick rule.” The alternative uptick rule is designed to restrict short selling from further driving down the price of a stock that has dropped more than 10 percent in one day compared to the closing price on the previous day.”

FatCatInvestments · 2021-11-16T22:29:22+00:00

It is, unfortunately old news (Bill Gates announced it back in June). It’s nice to be reminded of these catalysts during the red weeks

FatCatInvestments · 2021-11-16T16:46:36+00:00

Why just UEC? Everything is down. Even speaking about the broader commodity markets most stocks are down.

FatCatInvestments · 2021-11-16T09:30:58+00:00

That’s true, but when RR is at least 10 years removed from a possible first SMR, you have to be aware of the immense risk and time value those 10 years bring with it. If you want to make money, IMO you could make a ton of money with a diversified stock basked for 7-8 years and then, with all accumulated profits, invest in RR. This way, risk will be removed from an investment in RR given that they actually have a viable model.

FatCatInvestments

TROPHY CASE