I picked up shares of PALAF ten days ago. While it looked like a good speculation it also had a nice track record behind. Two legends, Rick Rule and Doug Casey, in mining stocks made a lot of money on PALAF years ago when there was a boom in uranium. I think there will be another boom in uranium and well-run companies like PALAF will do the best.
Why? Many countries like China and Japan are ramping up their nuclear power plants and building new ones. The surplus of uranium that Russia had been selling should be gone by now. And the spot price for uranium is at a very low level which has discouraged mine development. So with an increase in demand and low supply the price for uranium will jump high enough to make mining profitable again.
This is not the first story about the rosy future for uranium but PALAF is one of only a few stocks in a decent uptrend and that is why I bought it. You can buy it for about the same price as I did so the opportunity is still there.
Why? Many countries like China and Japan are ramping up their nuclear power plants and building new ones. The surplus of uranium that Russia had been selling should be gone by now. And the spot price for uranium is at a very low level which has discouraged mine development. So with an increase in demand and low supply the price for uranium will jump high enough to make mining profitable again.
This is not the first story about the rosy future for uranium but PALAF is one of only a few stocks in a decent uptrend and that is why I bought it. You can buy it for about the same price as I did so the opportunity is still there.