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RE: TIB: Today I Bought (and Sold) - An Investors Journal #269 - Europe, US Banks, Home Improvement, Clean Energy, Taiwan, Oil, Marijuana, Ethereum
Do you think Uranium makes a come back in the future? Do you like any home improvement stock like LOWES and HD in the US at all?
Uranium is a bottom fishing game. If you do not have any, take a punt in a small way and see what comes. Focus on a producer that can switch back on production easily. Best idea from US is Cameco - CCJ. I will checking it out again this week.
Not looked at home improvement in US. Normally one sees stock like this go well with economic growth. The correlation to study is with Homebuilders - XHB. They signal pressure from rising rates really well. I will not be surprised to see Lowes and HD track them strongly in this environment. I will study tomorrow.
I invested in CCJ many, many years ago, thinking the spot price of Uranium was going to move a lot higher, but it didn't. I have it on my to do list to look at XHB and compare it to the stock market and interest rates going back 10 yrs. Thus, we can compare analysis.
Quick chart of CCJ. It has certainly bottomed out and retesting the support level. The key part of the chart is the comparison with the Global X Uranium ETF (URA - orange line). CCJ is showing it wants to break up compared with the industry. Why? Cameco are in a position to enter production as soon as uranium price moves.
Options are pricey which means that one would need to do a bull call spread. Maybe the patient move is to wait until 2021 options are listed in a few months.
Thanks for the analysis, I will keep CCJ on my radar. Although as natural gas is suppressed, but if oil gets to $100, could be a nice opportunity to go long, but I like your bull call spread idea better.