Uranium on the Rise

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... it appears that in the past week we tested lows set in late January, pretty much held those levels with minimum further movement to the downside. Now uranium equities are moving upwards to test the recent high set on January 24 of this year. If we can get through that level we can move much further as momentum is currently on our side...

The past nine months have been very rough for investors in uranium equities, and our long-term chart for the Canadian Uranium Average fully supports this statement, but it appears as though the industry has bottomed and is now on its way up.

Our index fell all the way down to 141.87 on February 8, 2008 from a high of 325.915 on August 9, 2007 and the losses were across the board with only a few winners in that time-frame.

... it appears that in the past week we tested lows set in late January, pretty much held those levels with minimum further movement to the downside. Now uranium equities are moving upwards to test the recent high set on January 24 of this year. If we can get through that level we can move much further as momentum is currently on our side with Cameco (CCJ) recently being upgraded and all things considered a commodity are moving strongly upwards...The only way to meet their (China's) future needs for power (that is without having to have a coal power plant in each neighborhood!) will be to increase their already ambitious building plans for nuclear power plants. It is important to realize that each of these plants will require a fixed amount of uranium each year, and even more important is the fact that in their first year they will require even more uranium due to the fact that it requires more to fire up the reactor for the first time, plus the need to build an initial stockpile. We can picture this as being a multi-generational movement as it takes years to build nuclear power plants in the Western world and there really is no end in sight for power consumption with today's Digital Age running full steam.

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