Uranium Stocks and Industry Consolidation

A speculator is someone who can look into the future and act now. In early October, I saw a major development in the uranium sector as I began seeing signs of a major breakout of many of the uranium miners, via the Global X Uranium ETF URA. Uranium stocks have tripled since that time and are now taking their first major breather. During this time we have seen major investors come into the market specifically from China. This interest in uranium was highlighted back in June of 2010 when China National Nuclear signed a contract with Cameco Corp. CCJ to supply 23 million pounds of uranium. This showed how aggressive China has become and took a large amount of the supply off the table. Cameco is on the record looking for additional acquisitions. Already it has inked a deal with Uranium Resources Inc. URRE to explore a property in south Texas. Paladin Energy Ltd., an emerging producer, bought the controversial Michelin Property from Fronteer Gold Inc. for about $250 million in November. Continue reading the article.