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Are Our Sleeping Giants In Uranium And Rare Earths Awakening?

As our loyal subscribers are well aware, Gold Stock Trades has long been beating the drums for attention to be paid to the ongoing developments in nuclear (URA) and rare earth stocks (REMX). An important feature of our service is to focus our investment spotlight on what must be considered a vital factor in our modus operandi. Gold Stock Trades may be early in our sectors under review, but as we say in our masthead...we anticipate opportunities.

The search for possible long term winners may be a lonely road in the short term, but that is precisely the path we find attractive. Better to get on at ground level then buy at the fiftieth floor when much of the profits are already reflected. Gold Stock Trades mines for winners where gains are geometric as well as incremental.

Our venues are the roads less taken yet more profitable than the distracting detours of the daily players who are bogged down by the trees that obfuscate the verdant forest where the big winners reside. Four baggers are hard to come by, but they are there for the investors who can stay on the long term trend. One of our credos is patience and fortitude. Gold Stock Trades are for those visionaries joining us in our search for profit multiples.

Today's markets offer us a prime example of the validity of our mission statement, "to boldly go where no one has gone before". Seemingly obscure, but vital news items attract our eagle's panoramic sweep.

Example: At one point Gold Stock Trades occupied the loneliest of perches. Hourly the media blasted barrages of negative gloom and doom stories regarding the demise of nuclear power and the shortcomings of rare earth development. We sensed that much of this news were contrived to sell advertising.

Thus today an important arm of China-The Hanlong Bank-announces that they are casting a covetous eye on a seemingly obscure nuclear miner-Bannerman Resources (BAN.TO), domiciled in Australia and owning two huge uranium deposits in Namibia.

Read between the lines, the main property is located next door to Rio Tinto's (RIO) Rossing Mine, one of the largest uranium deposits in the world. Bannerman's Management is resisting the Chinese offer of $.61 a share, claiming China is taking advantage of its low share price due to the negative publicity that befell the global uranium market post-Fukushima. (It is important at this point to highlight the very same Hanlong Bank just signed an enhanced agreement with one of our favorite and long followed equities-General Moly.)

Gold Stock Trades refused to buy the nuclear bashing and chose to wrap fish in yesterday's newspaper. We remain more steadfast than ever as we muse over the rest of the story. Might it be that China is prescient?

As we write the following story is coming over the wires: "China Set On Nuclear Path". The Chairman of China's main energy agency states unequivocally, "Nuclear Power is a choice of must...we stay firm on our nuclear plans." Exactly what is China's (FXI) strategy? They are actively building 28 nuclear plants to reach 40 gigawatts by 2015. The Chairman felt shutting nuclear facilities was ill advised and precipitous. He claimed that the few nations that are abandoning nuclear are succumbing to fear and irrationality. It is as if humanity should stop eating because someone choked on a bite of food. He emphasized that China has no choice but to continue proceeding full speed ahead on its nuclear highway.

Similarly, there has been a significant development in another sector that we have been following for some time: The Rare Earths. Avalon (AVL), one of our earliest selections, just announced agreements with three major unidentified Asian companies in a memorandum of understanding (MOU). These companies are agreeing to provide capital and technical know how in exchange for future first call on production.

It is not a mere coincidence that this announcement surfaces at the same time that Avalon updates a very positive pre-feasibility study and begins the bankable feasiblity. It can only add additional spice to the wooing.

Today, there are an abundance of important developments pertinent to GST subscribers. Example: Major industrial producers concerned about having ready availability of critical rare earths are making alliances with miners.

Siemens, Europe's largest engineering firm, has entered into an important deal with Lynas(LYSCF.PK). We are witnessing end users partnering with miners to secure future supplies in assuring availability for uninterrupted production. This burgeoning trend will continue with more and more strategic relationships between industrial giants and rare earth miners. Molycorp (MCP) just announced that they will partner with Hitachi(HIT) to produce permanent magnets.

Gold Stock Trades has been predicting these milestones for a long time. It is understandable that some of our readers might be champing at the bit. Our studies reveal the rare earths and nuclear stocks are in basing formations, ready to break out of the starting gate. We will continue to keep our subscribers au courant. Stay tuned.

 


Disclosuer: Long LYSCF and AVL

 

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