Uranium

I am willing to bet on uranium price appreciation in the next few months. From its high of $300/kg reached in 2006-2007, price is now at around $120/kg. Stocks active in the uranium sector have been making new yearly highs (see example of UEX Corporation below). If you look at UEX weekly chart, one can see that the resistance was recently broken.

Fundamentals are good:
- Growing populations and ongoing urbanization in many of the world’s emerging markets will likely lead to drastic increases in demand for both uranium and electricity.
- Several countries (China, USA, France,...) plan to increase their nuclear power in the next future. China is expected to have as many as 150 new nuclear power reactors become operational over the next 10 years and India plans on doubling the share of nuclear power on its grid over the next 20 years.

UEX Corporation is a Canadian uranium exploration and development company formed under agreement between Cameco Corporation and Pioneer Metals Corporation. UEX began trading on the Toronto Stock Exchange in July 2002 and is an active explorer in the Athabasca Basin in northern Saskatchewan, which is the most important uranium-producing district in the world, accounting for approximately 20% of global primary uranium production in 2009.

A new ETF was launched last week to invest in uranium stocks: the " Global X Uranium ETF (ticker: URA on the NYSE). See factsheet here. It will be the first ETF to focus exclusively on this industry.
Top 10 holdings include: Cameco, Paladin Energy, Uranium One, Denison Mines, Hathor Exploration, Energy Resources of Australia, ...

I plan to buy a position in this ETF for my portfolio in the next few days..