| According to the Uranium Information Center there | | | | worldwide is increasing dramatically and the supply is |
| are currently 441 nuclear reactors in the world. These | | | | dwindling. The boom for this sector is started now |
| plants power over 355 million homes and businesses | | | | and those who invest in it now could be in for the |
| worldwide. In addition to the 441 currently running, | | | | investment opportunity of a lifetime. |
| there are 27 more under construction. There are an | | | | The simple fact is that Uranium is in a crisis shortage, |
| additional 38 planned (meaning funded) and another | | | | and the supply gap is growing by the day. In 2003, |
| 113 proposed (not yet funded). | | | | we recommended uranium stocks to our subscribers |
| If these all come on stream, that means we will have | | | | when uranium was selling for $11 a pound. Today it is |
| over 619 or a 40% increase of nuclear reactors in | | | | selling for $62.50 a pound - meaning that uranium has |
| the world, not counting the results of many studies | | | | increased over 468% in 3 years!! |
| by more and more countries looking for alternatives | | | | Better yet, most of the stock prices of the uranium |
| to a shrinking oil supply. | | | | companies that we invested in have skyrocketed to |
| Even well known environmentalists are starting to | | | | over, 500%, 700% and a few over 1,000% in that |
| advocate nuclear power as the prime alternative to | | | | same time period. |
| fossil fuels. Patrick Moore, one of the founders of | | | | As well as these stocks have done, there are plenty |
| Greenpeace said "Expanding nuclear energy is one | | | | more profits to be had. The truth is that the mass |
| way that we can actually [reduce] reliance on fossil | | | | investor has not even heard of investing in uranium |
| fuels in a big way," "Nuclear energy is the only | | | | and has no idea that there are uranium stocks on the |
| non-greenhouse gas-emitting power source that can | | | | market. At this point, the average investor doesn't |
| effectively replace fossil fuels and satisfy global | | | | know the difference between uranium and aluminium. |
| demand." | | | | They have no idea that you can buy shares of |
| USA Today reports that: "Nuclear power creates | | | | uranium companies that explore and produce uranium. |
| virtually none of the pollution that causes climate | | | | Check it out - ask a friend or work colleague who |
| change and delivers electricity cheaper than other | | | | you know invests in the stock market to name you |
| forms of generation do. If more reliable and cleaner | | | | one uranium company - then watch the expression |
| energy is the goal, nuclear power has to be part of | | | | on their face. Ask the same question in 2 years and |
| the solution." | | | | we bet they will know 2 or 3. |
| So what does this mean for investors? | | | | Although uranium has skyrocketed in price the past |
| The key for investors is to understand that nuclear | | | | few years, it is no where near the level that we |
| plants are powered by uranium. Without uranium, it is | | | | believe that it will reach. In early 1980, uranium was |
| lights out. What investors also need to understand is | | | | priced at $110 (adjusted for inflation). We fully expect |
| that the cost of uranium in the overall cost of running | | | | that uranium will again reach this level on this bull |
| the nuclear facility, is minimal compared to other fuel | | | | market. If we are correct, then there are some huge |
| sources. As the cost of uranium increases, the impact | | | | profits to be had for those investors savvy enough |
| on the cost of the nuclear plant is minimal. This is not | | | | to get in before the masses do. |
| the case with other forms of energy. | | | | Uranium is starting to get some play in the |
| Uranium also has the advantage of being a highly | | | | mainstream media. Recently, we have seen China |
| concentrated source of energy which is easily and | | | | sign a significant deal with Australia securing large |
| cheaply transportable. The quantities needed are very | | | | amounts of uranium for their planned nuclear |
| much less than for coal or oil. One kilogram of natural | | | | expansion. We reported over a year ago that the |
| uranium will yield about 20,000 times as much energy | | | | Chinese have been looking into many of the Canadian |
| as the same amount of coal. It is therefore | | | | uranium companies as well. We believe that this is |
| intrinsically a very portable and tradable commodity. | | | | just the start of some huge deals to be made as |
| Like any new bull market, the initial investors always | | | | countries look to secure their energy future. |
| "look wrong" to the investment world - it is a fact of | | | | Similar to the precious metals, uranium will slowly |
| the human psyche. Three years ago to even suggest | | | | move from page 16 news, to page 1 news. When it |
| that Nuclear power was a solution for the global | | | | reaches page 1 news, the masses will jump on board. |
| energy needs was considered "ridiculous". Today, we | | | | And when they do, we will be selling. |
| have leading environmentalists promoting nuclear | | | | The successful investors are the ones that identify |
| power as the leading solution to global warming and | | | | new bull markets, invest in them early, then sell out |
| the high cost of fossil fuels. | | | | of these markets once the mass investors jump in. |
| Supply-side deficit a reality. | | | | When everyone moves to one side of the boat, it is |
| From Morgan Stanley - Global Insights | | | | time to get off the boat. |
| Mining fails to keep pace with demand. Uranium mine | | | | The bottom line is that demand has outstripped |
| production in 2003 satisfied only 53% of our | | | | supply by 160%, and this gap is growing every day. |
| estimated demand for uranium. The balance of | | | | The Time To Act Is NOW! |
| demand was met from stock depletion and dilution of | | | | The fact is, the price of uranium is up over 460% in |
| weapons-grade highly enriched uranium. This has been | | | | less than 3 years. There are no guarantees in life, but |
| the case for at least the past three years, when | | | | we believe that investing in uranium is the closest |
| mine production accounted for only 55% of demand. | | | | thing we have seen to guaranteed profits in over 20 |
| This situation has, in our opinion, kept prices relatively | | | | years. We believe that this is an investment |
| low until recently, with utilities now starting to push | | | | opportunity that is greater than the internet boom, |
| prices higher in anticipation of a supply shortage. | | | | and even greater than the gold bull market currently |
| Make no mistake, the uranium consumption | | | | under way. |