My Twitter followers probably already saw me tweeting about uranium for a while now. I’ve been saying that it could bottom here, where the main instrument or vehicle of choice is Global X Uranium ETF $URA. It’s been bottoming for the past 3 years and it feels the process could be ending soon.
Let me share with you a tweet I published yesterday. I think there is no need to add much more.
I've been watching the #uranium space for a while now. You know that I've been saying it could bottom here. Well, I like $URA above 14.
Would like it even more above 16, and I think we could get there very soon! pic.twitter.com/PlMMAuPDev
— Domen Butala (@DomenButala) June 5, 2018
But I would like to highlight a few comments I received on my post. I think they add value!
Philip thinks institutions might have started buying as well!
I think you are right, it looks like the Institutions also agree have a look at the increased holdings since 31st March 2018, very few sells. This probably accounts also for the additional $50 million being held under management since the half year accounts were published Oct 17
— Philip Neate (@philip_neate) June 5, 2018
Another instrument, according to Peter it is more exposed to pure uranium miner play, is $GCL.
URA has diversified recently and is no longer a pure uranium/U miner play. I think Geiger Counter is one of the only funds that tracks just the supply side.
The sector is definitely heating up after years in the doldrums.
— Peter Eliya (@PeterEliya) June 5, 2018
But as Philip added it could still be cheaper to be exposed to URA rather than GCL.
Also management fees are significantly higher for GCL. Annual fee 1.375% of total assets payable monthly in arrears based on the mid-market value of the assets at the month end. Plus a performance fee of 20% of outperformance above an 8% per annum hurdle. URA is 0.69%
— Philip Neate (@philip_neate) June 5, 2018
Guys, thanks for the comments! And let’s see how this thing plays our. Time will tell which one will outperform in the future. For now I’m still sticking to URA though. But should uranium space really bottom here either one should perform very well!
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