Uranium prices back on the rise

Sean Brodrick takes a closer look at uranium and five reasons why the price has pulled back. Mr. Brodrick further discusses the reasons why uranium prices could soon be on the rise again.

Brodrick believes this may be a good time to look at uranium and nuclear power because as oil prices dominate the headlines, investors are looking at uranium. As a result, uranium stocks are rallying sharply and industry analysts are turning bullish. In fact, two different positive reports on uranium were recently released from MacQuarie and Merrill Lynch. Brodrick thinks that this could also reignite investor interest in uranium stocks. But despite the powerful rally currently underway, most investors are still stuck on why uranium prices pulled back.

Five short-term forces have occurred to overturn the uranium trend:

1) Utilities stockpiled enough uranium enabling them to stop emergency buying on the spot market. Also, utilities are avoiding buying uranium on the spot market in the hope that the price will decline even further.

2) A large supply of enriched uranium came into the market, including 200 metric tonnes from U.S. government stockpiles.

3) The downturn in uranium prices stopped investors from buying more uranium through funds like the Uranium Participation Corp.

4) Japan shut down its reactors due to safety concerns. This should continue to weigh on demand through 2008.

5) Paladin's new Langer Heinrich mine in Namibia ramped up to full capacity by the end of 2007 and mines in Kazakhstan also ramped up production.

China has recently announced its intention to aggressively buy uranium resources around the globe. According to the World Nuclear Association, China will build 35 nuclear reactors in the next 10 years and has 86 more in mind. This would raise its nuclear electricity producing capacity by 300%.

There are 433 nuclear plants in operation worldwide, 33 under construction, 91 in advanced planning stages, and over 200 proposed. Four plants in the United States have applied for regulatory permission to begin construction, but the bulk of the new construction is targeted for China, India, Russia, South Korea and Japan. China and France enhanced their cooperation in nuclear power recently, establishing a number of joint ventures.

"To the fullest extent possible, nuclear operators have been locking in forward contracts to shift the risk of shortfalls to producers. But legacy contracts at very low prices are hitting the end of terms, and new contracts will likely be negotiated at higher prices," Brodrick states.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspxThe-Alternative-Energy-Bargain-1802

About SEAN BRODRICK & MONEY AND MARKETS

Sean Brodrick joined Weiss Research in 2000 as an analyst, bringing more than 25 years experience as a journalist and financial analyst to the position. He is Weiss Research's small-caps specialist, especially in natural resources, and is the editor of the company's Red-Hot Canadian Small-Caps, as well as a regular contributor to its daily e-letter, Money and Markets.

Previously, Mr. Brodrick was the investment director of The Sovereign Society, the world's leading publisher of offshore asset protection strategies and global investment opportunities.

Recognized for his expertise on Canadian and Australian investment opportunities, Mr. Brodrick has been featured on many financial talk shows, including CNBC Squawk Box and Bloomberg Market Line. He is a weekly guest on Market Matters Radio, a contributing columnist to MarketWatch.com and a frequent commentator on one of Canada's premiere financial websites, HoweStreet.com. His report, "70 Days to Empty," has garnered acclaim for its analysis of the forces pushing America toward its next oil crisis and was described by

The Daily Reckoning as "the most important report you're likely to read this year," while his knowledge of uranium has helped investors earn solid gains on the commodity.

Mr. Brodrick holds a B.A. degree from the University of Maine.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

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