Commodity Culture 'It Just Does Your Head In' - Time to Throw in the Towel on Uranium? Trader Ferg
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May 14, 2025 Trader Ferg, a full-time trader specializing in uranium, oil, and coal, shares his candid views on the struggles within the uranium market. He questions whether there's still potential for profit or if the market has stalled indefinitely. Ferg also highlights the psychological challenges investors face amidst disappointing stock performance despite positive company earnings. The conversation extends to oil price fluctuations, the coal sector, and gold mining stocks, offering a holistic view of today's energy landscape and investment strategies.
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Uranium Sector's Long Delay
- The uranium sector is suffering long delays and painful equity drawdowns despite positive fundamentals and very bullish long-term theses.
- The market is currently held back by excess supply floating around and the lack of a clear catalyst makes timing difficult.
Uranium's Market Challenges
- Uranium lacks a futures market, which allows price manipulation and obscures true value discovery.
- Contracted pounds are drying up, indicating potential future tightness but causing current uncertainty and discouragement among investors.
Select Uranium Investments Carefully
- Consider investing in uranium companies that are ready to produce but delaying final investment decisions, to capture future upside at the right price.
- Avoid those with persistent operational issues and prefer jurisdictions with lower risk and cost, like US ISR projects.