Terry Savage on the Dines Newsletters' Uranium Call.
Where will all this uranium come from? From mining
companies in the U.S., Canada and Australia. And,
along with the price of uranium itself, the stocks
in those companies have already soared. Dines'
proprietary index of uranium stock prices is up
1,112% in the past few years. His explanation is
that even though there is an abundance of uranium
in existence, higher prices and demand will
encourage production and profits.
Dines' recommended list includes companies such as
Cameco (CCJ:NYSE - news - research - Cramer's Take)
(up 1,839% since he recommended it several years
ago) and Fronteer (FRG:Amex - news - research -
Cramer's Take), as well as Pinetree Capital, Mega
Uranium and Laramide Resources, which trade on
Canadian exchanges. If demand for uranium continues
as predicted, these stocks will become as familiar
as JDS Uniphase (JDSU:Nasdaq - news - research -
Cramer's Take), Cisco (CSCO:Nasdaq - news -
research - Cramer's Take) and Brocade (BRCD:Nasdaq
- news - research - Cramer's Take) were in the late
1990s. (And, of course, you recognize the risk
inherent in these speculative situations, having
learned the lessons of history.)
So, far from recommending uranium stocks as a
speculation at this point (though Dines considers
this just the beginning of the move), this is a
wake-up call to the issue of energy independence
that will dominate our future. And I write this
column to give Dines some well-deserved credit for
his farsighted investment advice, once again.
That's The Savage Truth.