By Andrew Mickey Chief Investment Strategist, Q1 Publishing

It has been a wild couple of weeks. To say the markets are going haywire is a tragic understatement. The market has started a vicious downtrend and there’s no sign of it turning around. All the recent volatility is causing more sell-offs forcing share prices into a dangerous downward spiral.

Half of the stocks on the NYSE set a new 52-week low yesterday. The NASDAQ is almost in just as bad shape. And anything with a market cap of less than a $1 billion…you don’t even want to look at it.

As we watched a few weeks ago, all of the uncertainty is causing investors to pull out of mutual funds as fast as they can. Last week more than $7 billion was pulled out from equity mutual funds according to AMG Data services. And an additional $2.6 billion was redeemed from bond funds.

The massive sell-off was on top of an absolutely horrible July when investors yanked out more than $23 billion. August wasn’t much better when about $6 billion was pulled out.

It’s getting ugly. Mutual fund flows are a key indicator of sentiment. And right now, investor sentiment is at a precariously low point.

The worst part of it all, I’m afraid, is too many investors are succumbing to emotion. Let’s face it, in bull markets we get away with bad habits. But in bear markets, these habits will destroy our portfolios.

One of the worst habits we can fall into is letting our emotions take over. In times like these, it’s best to take an unemotional look at everything. Take nothing for granted.

So today, I’d like to take a step back and try and dispel a few of the myths that I’ve been watching get pushed on unsuspecting investors. We’ve got it all: gold, Buffett, the bailout, and more.

Market Myth #1: Stocks are “On Sale!” Now is a Great Time to Buy: This is the most dangerous attitude of all. To be honest, it’s rarely a truly great time to buy. Don’t get me wrong, there are a lot undervalued stocks out there. But if we look at the basic movements of stock prices, it’s not hard to see this is not truly a “great time to buy.”

As many investors are forced to relearn every few years, stocks go down a lot faster than they can go up. It’s simple market dynamics. Even in the greatest bull markets, the major market indices are soaring if they are up more than 20% in a year. In a strong bull market indices can climb as much as 15% to 25% each year…for years.

But the downside is years of gains can be wiped out in a matter of months.

Just take a look at what happened in the last four years. In October 2004 the Dow was at 9,800. A three-year bull market pushed the Dow to a new all-time high above 14,000 last October. That works out to an annualized return of 12.5% over three years.

Not too bad. Then the current bear market took hold. Since then, all of the gains have been wiped out. A 12-month downturn has scratched the three years worth of gains.

Stocks go down a lot faster than they go up. So even if a bull market as strong as the last one started today (which isn’t likely) and we got a 12% return, we wouldn’t miss out on much of the upside. The whole time we’re trying to catch the bottom; we could get caught in a further decline.

And for me, waiting on the sidelines and running the risk of missing out on a 12% return, far outweighs the risks of getting caught up in any further sell-off.

Investing is all about odds and expected returns. Right now, the expected positive return is low and odds and costs of more downswings are high. Most of your safe money should be on the sidelines.

It’s OK not to buy stocks.

Market Myth #2: China’s Economy has Decoupled: We’ve heard this argument for a long time. The word “decoupling” has been thrown around a lot. For a while there it looked like “supercycle” was on its way to the dictionary. As the world is quickly learning, this myth is far from true.

Decoupling is when two economies are no longer linked together. In this case, the whole world seemed to believe a decade of double-digit GDP growth in China would allow it to disconnect from the United States. Many expected it would be almost immune to a recession in the United States.

So far, that is not the case. Decoupling will happen…but it takes a lot longer than most people think.

The last major decoupling and economic shift happened about 100 years ago. The United States was the emerging market and the United Kingdom was the superpower in decline. It took 50 years, two world wars, a market crash, a decade-long depression, and a few financial panics before the United States would emerge as the new leader.

Now, China is on its way to emerging as the world economic leader. It’s happening all over again. As we’ve seen in the past though, decoupling just doesn’t happen in a few years. It takes decades for an emerging economy to decouple and then assume a leadership position. This time is no different.

Market Myth #3: The $700 billion Bailout is the Key to a Market Turnaround: As we’ve been saying here at Q1 ever since the bailout was announced a few weeks ago: the bailout is not what really matters, it’s the economy.

It’s always the economy.

Don’t get me wrong, the bailout will be helpful. But in the long run, it doesn’t mean much.

I look at it like this. The global financial system is a complex machine. There are a lot of parts. They all have to run smoothly for the machine to work. That’s not happening right now.

Credit markets are seizing, stock markets around the world are plummeting, the global housing market is falling apart…there is a lot of sand in the gears. It has to be cleaned out and lubed.

Right now, asset devaluations are helping to clean it out. As for lube, the only thing that can lube the machine is confidence. And that’s going to be very hard to come by.

The government can temporarily help provide some confidence by opening up the treasury. It worked during the S&L Crisis in the 80’s. It helped create the softest landing possible in 2002. But it’s only a temporary fix.

The only sustainable source of confidence is the economy. And it is only economic growth that can provide the sustainable lubrication for the machine to run smoothly. In this case, it’s going to take a while for the economy to get fixed up.

Confidence has been shaken, but it hasn’t been eliminated. Since the machine has been running relatively smoothly for decades, I wouldn’t expect this time around to be any different. There have been plenty of hiccups before, but each time the lubrication of economic growth saved the day.

In a couple of years the economic picture will be much brighter. The complex financial machine will then be well lubricated. Only then, will the markets truly recover and set higher highs. After that happens we’ll look back on the next two years as a fantastic buying opportunity.

Market Myth #4: Gold is the “Perfect” investment:   At the risk of offending all the gold bugs out there, gold is not the perfect investment. In fact, gold isn’t an investment at all.

If you’re looking for truly great returns on your investments over the long-term, you have to find sustainable growth of value. The best way is to find companies that can grow consistently, generate high cash flows so they can either finance expansion or pay decent dividends, and are fairly insulated from competition.

The best companies you can buy are ones that have widening margins and expanding market share. They’ll give you the best returns over the long term. Companies like that, whether you buy shares or start one yourself, is truly the best way to invest.

Gold, however, offers none of those attributes. It only goes up in value if someone is willing to pay more for it. The returns may be good in a gold bull market, but they won’t be very good over the long-term. Just take a look at the past 26 or 35 year periods. Gold missed out on a lot.

Don’t get me wrong, gold does have some value.

Gold is a great trading vehicle. And the recent volatility in gold prices has made it even better. When something moves 10% in a day, then sees up and down swings of about three and four percent each day, active traders will get very interested. After all, with the amount of leverage you can get with gold futures, you can easily turn a three percent return into triple-digit gains…if you’re on the right side of it.

Gold is also a good insurance policy against financial catastrophe. Keeping 5% to 10% of your portfolio in gold is a good idea. It’ll always be there. Gold is a part of any sound financial plan, but it is far from the perfect investment.

Market Myth #5: Warren Buffett is the World’s Greatest Stock Picker: Warren Buffett has a lot of characteristics that have made him a legend. But calling him the greatest stock picker is probably a bit much.

Don’t get me wrong, he’s a great one, but I don’t think that ability has been the driving force behind his successs. But the likes of Peter Lynch, Bruce Berkowitz, Ken Heebner and a handful of others could justify laying claim to the title. So before you follow his footsteps, you have to remember: Buffett is a long-term investor.

I think his patience is his greatest key to success. He has waited out recessions of all lengths, market crashes, and international crises. When he goes in, he goes in for five years or more. And that ability is what has played a big role in making him a truly successful investor.

You see, long-term investors have the greatest odds of success. In his classic, More Than You Know: Finding Financial Wisdom in Unconventional Places, Michael Mauboussin details how long-term investing is an essential part of being a successful investor. Mauboussin, the Chief Investment Officer of Legg Mason, looks at investment success from a purely mathematical perspective.

He focuses on the probability of success relative to time. As you might expect, the longer someone holds a stock, the greater his odds of success.

For instance, the odds of coming out ahead on a trade with a holding period of one hour is about 50/50 (that’s before commissions too). The odds of a one month holding being profitable is only slight better at 56%. After a year odds increase 72.6%. After ten years, the probability of success soars to 99.9%.

Buffett, as a true long-term investor, has got probability on his side. And that’s one of the first steps to being successful in anything. Whether its investing, poker, sports, etc, you’ve got to put the odds in your favor. -------------------------------------------------------------------------------------------------------------

Stocks may be cheap right now, and they’re probably going to get cheaper. The current economic slowdown is going to last a while.

The key indicator to watch is the unemployment rate. Last month the U.S. economy shed another 159,000 jobs and the unemployment rate held steady at 6.1%. That marks the eighth month in a row for job losses.

It’s not just a problem localized to the United States though. The U.N.’s International Labor Organization expects global unemployment rates to uptick from 6.0% to 6.1% this year. And that’s assuming the global economy grows at a 4.8% rate in 2008.

When you consider the state of the U.S. economy, the fact England is on the verge of what could be an even larger financial crisis, and Europe’s economic growth grinding to a halt, 4.8% growth is very optimistic.

Right now, wait for the economy to rebound. Once we start getting the first signs of that, confidence will return and the financial system will go back to normal.

Most importantly, don’t ever forget, you do not have to buy stocks. Sometimes it makes the most sense just to wait.

Good investing,

 

Andrew Mickey
Chief Investment Strategist, Q1 Publishing

Andrew Mickey, Q1 Publishing

Warren Buffett has had a lot of success. But I’ve got to hand it to him, this deal has the makings of an absolutely brilliant move.

Earlier this week every major news outlet seemed glad to report Buffett had practically saved the day when Berkshire Hathaway (NYSE:BRK-A) made a $5 billion investment into Goldman Sachs (NYSE:GS).

But as details shortly followed we learned Goldman had to bend over backwards to close this deal. Buffett got a lot more than a $5 billion equity stake in Goldman. He also got more than 43 million warrants to buy Goldman shares at $115 and a 10% annual dividend to boot.

When you add everything up, he practically got his position at a 39% discount. The numbers don’t lie.

Warrant Value

Warrants have value. To find that value we have to make a few assumptions.

If we look at the Goldman Sachs Jan 2011 110 call option (which is the closest actively traded security to the warrants), the implied volatility the market assigns to long-term Goldman options is 44%. These options were trading for about $47 a piece and had 839 days until expiration.

Once you up the days until expiration to 1800 to account for the five year life span of the warrants, take Thursday’s closing price of $133, the value of each of Berkshire’s warrants is $60.26 a piece.

That means Berkshires 43.478 million warrants is worth a total of $2.62 billion.

Dividend Value

We’ve also got to account for the value of the $500 million a year in dividends. The Net Present Value of those (discounted at an 8% rate) are worth $1.96 billion if it Berkshire holds them for five years.

Preferred Share Value

Finally, we’ve got to take the value of the preferred shares. Goldman has to buy these back at some time or they will be an annual $500 million drain on its annual cash flow and pre-tax profits.

The value of these will fluctuate with general interest rate levels and Goldman’s creditworthiness so it’s tough to put a value on these. But if we take an 8% discount rate, the present value of a $5.5 billion repayment from Goldman in five years (as part of the deal, Goldman has to pay a 10% penalty for buying back the preferred shares) is $3.62 billion.

Total Deal Value

If you add it all up, Berkshire is walking away with $8.2 billion for its $5 billion cash infusion. That’s equivalent to buying dollars for 61 cents each.

Of course, we had to make quite a few assumptions, but any way you look at it, this is a fantastic deal.

 If Goldman buys back the preferred shares earlier than five years or takes longer than five years it’s a good deal…even if Goldman’s stock price goes nowhere. If it goes up, this is a great deal.

The only way to lose here is if Goldman goes bankrupt or interest rates soar to the levels of the early 80’s. But if the latter happened, Goldman shares would probably be a lot more valuable offsetting any losses incurred from the decline in value of the preferred shares.

Any way you look at it, this has the potential to be a truly huge success for Berkshire. Warren Buffett has proved why he’s the most successful investor of the past half century: he always keeps the odds in his favor. And, if you can, you should buy like Warren Buffett, instead of what he buys.

As a result, I don’t see this deal as Warren thinking Goldman shares were too cheap to pass up, but more like the deal was too good to pass up. That’s probably the real reason he took out such a big bet.

Good investing,

 

Andrew Mickey
Chief Investment Strategist, Q1 Publishing

Disclosure: I have no position in any of the companies mentioned.

 

Andrew Mickey, Q1 Publishing

Warren Buffett has had a lot of success. But I’ve got to hand it to him, this deal has the makings of an absolutely brilliant move.

Earlier this week every major news outlet seemed glad to report Buffett had practically saved the day when Berkshire Hathaway (NYSE:BRK-A) made a $5 billion investment into Goldman Sachs (NYSE:GS).

But as details shortly followed we learned Goldman had to bend over backwards to close this deal. Buffett got a lot more than a $5 billion equity stake in Goldman. He also got more than 43 million warrants to buy Goldman shares at $115 and a 10% annual dividend to boot.

When you add everything up, he practically got his position at a 39% discount. The numbers don’t lie.

Warrant Value

Warrants have value. To find that value we have to make a few assumptions.

If we look at the Goldman Sachs Jan 2011 110 call option (which is the closest actively traded security to the warrants), the implied volatility the market assigns to long-term Goldman options is 44%. These options were trading for about $47 a piece and had 839 days until expiration.

Once you up the days until expiration to 1800 to account for the five year life span of the warrants, take Thursday’s closing price of $133, the value of each of Berkshire’s warrants is $60.26 a piece.

That means Berkshires 43.478 million warrants is worth a total of $2.62 billion.

Dividend Value

We’ve also got to account for the value of the $500 million a year in dividends. The Net Present Value of those (discounted at a 10% rate) are worth $1.96 billion if it Berkshire holds them for five years.

Preferred Share Value

Finally, we’ve got to take the value of the preferred shares. Goldman has to buy these back at some time or they will be an annual $500 million drain on its annual cash flow and pre-tax profits.

The value of these will fluctuate with general interest rate levels and Goldman’s creditworthiness so it’s tough to put a value on these. But if we take an 8% discount rate, the present value of a $5.5 billion repayment from Goldman in five years (as part of the deal, Goldman has to pay a 10% penalty for buying back the preferred shares) is $3.62 billion.

Total Deal Value

If you add it all up, Berkshire is walking away with $8.2 billion for its $5 billion cash infusion. That’s equivalent to buying dollars for 61 cents each.

Of course, we had to make quite a few assumptions, but any way you look at it, this is a fantastic deal.

 If Goldman buys back the preferred shares earlier than five years or takes longer than five years it’s a good deal…even if Goldman’s stock price goes nowhere. If it goes up, this is a great deal.

The only way to lose here is if Goldman goes bankrupt or interest rates soar to the levels of the early 80’s. But if the latter happened, Goldman shares would probably be a lot more valuable offsetting any losses incurred from the decline in value of the preferred shares.

Any way you look at it, this has the potential to be a truly huge success for Berkshire. Warren Buffett has proved why he’s the most successful investor of the past half century: he always keeps the odds in his favor. And, if you can, you should buy like Warren Buffett.

As a result, I don’t see this deal as Warren thinking Goldman shares are too cheap to pass up, but more like the deal is too cheap to pass up.

Good investing,

 

Andrew Mickey
Chief Investment Strategist, Q1 Publishing

Disclosure: I have no position in any of the companies mentioned.

Andrew Mickey, Q1 Publishing

It’s tough to find anything positive to talk about in this market.

 

The U.S. Government stepped in and assigned Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) a value of zero through governmental decree.

 

Even a cutback in oil production from OPEC can’t stop oil prices from falling. Gold, silver, and fertilizer stocks are falling too. Even Brazil’s stock market, the top-performing BRIC nationof 2008, is starting to fall.

 

It’s bad out there for most industries. But there’s no sector worse off than the pharmaceutical sector. Big Pharma stocks like Pfizer (NYSE:PFE), Merck (NYSE:MRK), and Glaxosmithkline (NYSE:GSK) are having a rough time and it looks like more stormy weather ahead. And these companies are giants headed for a fall. 

But here’s the thing about the drug industry, bad times for the big guys can mean good times for the little guys. And that means great means great profits for savvy investors. Right now, Big Pharma is searching for new revenue streams, and that is good news for the shareholders of smaller innovative drug makers.

 

CNN summed Big Pharma’s problems up best when it said, “[The industry is] like rearranging chairs on the Titanic.”

 

Frankly, the situation is bad…real bad. Even 9-digit lobbying budgets and their hundreds of Ivy League-educated lawyers aren’t going to be able to stop it.

 

The cause of the problem is complacency. You see, Big Pharma is lives on “blockbuster” drugs. A blockbuster drug is simply any drug that generates at least $1 billion in sales each year.

 

And it’s those drugs that make the big profits for the multibillion-dollar pharma companies like Pfizer, Merck, and GlaxoSmithKline.

 

On average, it takes about $800 million to develop a drug. That takes a moment to digest.   It’s an astronomical price tag for a product that is difficult to “market test”.   The $800 million  covers everything from early pre-clinical trials, the three phases of FDA approvals, and marketing costs. As a result, it takes a big success to make any money in the drug industry.

 

So for these big drug companies, $1 billion is basically the break even point.

 

Keep in mind, that’s not including the costs to manufacture each pill…and the costs of any lawsuits, production delays, competition, patent disputes, and everything else that seem to pile up.

 

There’s another significant challenge the big pharma companies have to deal with: the length of the patent.   New drugs are only patented for 20 years. That’s sounds like a  generous amount of time. If they had 20 years, a drug company would have to sell only about $40 million of a drug to recoup those costs of developing a new one.  But investors are not typically patient enough to operate on that time-line.

 

At the 20 year point, the patent expires and anyone can make the drug and sell it. The generic drug industry is founded manufacturing drugs after the patent runs out. Generic drug makers wait for the patents to expire, take the formula that costs hundreds of billions of dollars to develop, and reproduce.

 

Since they have none of the $800 million in research costs to recover, they can easily undercut the prices original developer of the drug. The generics can cost as much as 80% to 90% less than brand name drugs. Consumers inevitably turn to the cheaper version.

 

But we’re discounting one technicality. According to U.S. patent law, patented drugs are protected from competition for 20 years. In reality, drug companies don’t have nearly that long.

 

The clock starts ticking when the patent is filed. That’s before the safety and development process even begins.

 

Since that process usually takes at least a decade, drug companies don’t have anything close to 20 years….they usually have only seven to 10 years to sell their drugs at top prices. They’re protected from competition by patents for a very short time. And once the patents expire, the generic manufacturers move in and take sales away.

 

In the next few years, the worst possible thing is going to happen to Big Pharma. The industry that needs vast amount of cash to fund high-risk projects knowing any payoff is 10 years away (at the earliest), is going to get cut off from their lifeblood….

 

The number of drugs  going “off patent” in the next few years is alarming. According to IMH Health, more than $60 billion worth of drugs are going “off patent” by 2011.

 

Take Fosamax for example. Fosamax is Merck’s current top selling drug. It’s designed to help treat osteoperoasis by making bones stronger. It brings in more than $3 billion in sales to the company each year.  It WAS a huge success for Merck…

 

Emphasis on WAS.  The Forsamax patent expired in February of 2008.

 

Fosamax accounted for more than 12% of one of the largest pharmaceutical companies in the world! Now, it’s all gone. Anybody can take the secret formula that made Fosamax success, directly copy, and resell it for as cheap as possible.

 

Fosamax is just one example of the huge impact of a drug going “off patent.” It’s happening all across Big Pharma.

 

GlaxoSmithKline’s Advair came off patent in February, 2008. Advair accounted for 15% of annual sales for GSK.

 

Top selling anti-depressant Effexor, which accounts for $3.7 billion in annual sales for Wyeth, has gone off patent too. Last June, when the patented expired, 6% of Wyeth’s business was eliminiated.

 

Johnson & Johnson’s Topamax, which racks up $2.5 billion in annual sales, is going off patent in September. AstraZeneca’s $1.2 billion loses patent protection in October….

 

You get the picture. It’s happening now and more and more drugs are going to go “off patent” in the next two years.

 

Big Pharma is going to be forced to buy small biotech companies just to survive and the buyout frenzy could spark a very bull market in biotech.

 

In fact, it has already started. Earlier this week a rumor of an “imminent” takeover by Pfizer of Bayer sent shares of the German drug maker climbing 5%. Forbes reports the top cause of the buyout is Bayer’s extensive pipeline of new drugs in development.

 

Although any Pfizer/Bayer combo is unlikely and far from a perfect fit, the excitement surrounding it proves how desperate Big Pharma is becoming.

 

At the end of the day, the investing principals we stick to at the Prosperity Dispatch are pretty simple. You buy something (a stock) at a low price and hope to sell it at a higher price. And right now, you can buy small biotech stocks at a low price that are good candidates to be bought out by deep-pocketed buyers at a higher price.

 

Good investing,

 

 

Andrew Mickey

Chief Investment Strategist, Q1 Publishing

 

 

Andrew Mickey, Q1 Publishing

It’s called “burying.”

Governments have turned it into an art form.

At some time or another, every major organization is forced to release some bad news that they would like to hide.

But they can’t hide it. So they bury it.

The best way to bury bad news is it to release it on a Friday evening. TV ratings are lowest on Friday evenings.  The weekend political talk show topics are set on Friday mornings. By burying a news story on Friday evening it won’t get much exposure.

In the last few months, the U.S. government has made a number of Friday afternoon announcements. For instance, the EPA buried the announcement it will not be testing the amount of sewage sludge used in fertilizer. Or that the U.S. Department of the Interior has reversed a rule limiting the amount of mining waste that can be dumped on public land.  The government also declared that commercial fishing practices that encircle dolphins with nets would have no impact on the dolphin population. They were all buried.

It’s not just the government burying unsavory news. Businesses do it too.

That’s why I was very intrigued on Friday when I saw an announcement from embattled uranium giant Cameco (NYSE:CCJ) come across the wires hours after the markets closed. It had to be something they wanted to keep as quiet as possible and could make these “Two Uranium Bulls to Jump on Now” even more valuable.

Preparing For the Worst

Cameco wasn’t able to bury this one though. Cameco announced it will be cutting a $28 million check to acquire 11% of GoviEx’s uranium exploration property in Niger. On the surface, I think it’s a wise move for Cameco to expand its exploration portfolio into Africa (and the uranium giant would be hard-pressed to find a better partner). After thinking about it for a while, I realized the timing of this news shows there could be some big problems brewing at Cameco.

Frankly, we’ve known Cameco has had some problems for a while. Cameco’s well-documented problems might be bad news for its shareholders, but it is good news for investors looking to catch onto the next leg of the uranium boom.

A little over a week ago Cameco announced its Cigar Lake uranium mine could face more delays…if it ever goes into production. News of the mine, which was expected to provide as much as 17% of the world’s uranium production, is facing more setbacks and it wasn’t received well. Cameco’s share price continued its 30% plunge in the past two months.

Cameco added to the selling frenzy by stating it expects its 2008 production to total 19.6 million pounds of uranium. That’s one million pounds short of previous expectations.

Cameco is facing an uphill battle. It’s going to take a long time for these stories to play out and no one outside of Cameco really knows for sure. Regardless, we know one thing for sure: Cameco needs more uranium projects. And now, with spot uranium prices back above $60 a pound and the long-term delivery prices for uranium at $90 a pound, Cameco is going to have to pay top dollar for them. And that’s where the investment opportunity lies.

A Buyout Boom Begins

In this case, I’m not going to fault Cameco.

Is it a horribly run company that’s made some major blunders in the past few years? I don’t think so.

Did they miss out on picking up some exploration properties in Africa, Canada, and Australia? Possibly…but Cameco is a major mining company and exploration is not its primary objective.

Exploration is left to the junior miners. The juniors shoulder the risk of spending millions drilling holes in the ground hoping to find a new deposit. The majors buy the exploration companies. They have the cash, personnel, and expertise to buy a junior exploration company and turn it into a mine. That’s what majors do.

Cameco is doing the right thing and aggressively acquiring new uranium projects. In addition to the GoviEx deal, Cameco recently bought the Kintyre uranium deposit in Australia from Rio Tinto (NYSE:RTP).

The way things are shaping up, Cameco is going to have to do a lot more acquisitions. Cameco has very few new sources of uranium to mine.

The key thing here is Cameco has the deep pockets to solve the problem. At the end of last year, Cameco had more than $1 billion of cash, receivables, and inventory ready to be liquidated. It also generated more than $800 million in cash flow from operations in 2007. All together, that’s plenty of cash to fund a shopping spree across uranium exploration companies.

The deal with GoviEx is likely just one of what I’m sure is many more to come. Cameco has to go shopping and it could spark some interest in the top tier uranium exploration companies. For instance, one takeover candidate is Hathor Exploration (TSXV:HAT) which will eventually be bought out by one of the major uranium mining companies.

The writing is on the wall for the resurgence of uranium mining and exploration. Cameco’s “buried” news story is just the start of what should be an exciting year ahead for uranium investors.

The days of overnight triple-digit gains from uranium stocks may be over, so we’ll need to be patient. But there’s still plenty of opportunity out there for market-beating returns in uranium for those of us willing to be patient and maintain realistic expectations.

Good investing,

 

Andrew Mickey
Chief Investment Strategist, Q1 Publishing