Interview with Justin Huhn, writer of the Uranium Insider newsletter and Twitter influencer.
Uranium is a relatively small space. It is a complex, unique commodity with numerous ways to make and lose investors money.
In this gentle introductory interview with Justin Huhn, he provides prospective uranium investors with an outline of the tropes of the uranium market.
After explaining his personal motivations for choosing uranium, Huhn looks towards 2020: a huge year for every uranium producer the world over. Price discovery is needed soon for most companies to survive. A dwindling spot price since the Fukushima disaster has left uranium with a stagnant, uneconomic low of $24.80/lb (as of 06/01/2020). American producers are waiting for the judgement of a uranium working group, but their schedule appears about as predictable as President Trump's Twitter timeline, and recurring delays have only led to more uncertainty.
Huhn succinctly explains why investors should consider putting their money into what seems like a stationary void, rather than looking at other commodity types: the fundamentals of uranium are undeniable. Both to further the global movement towards green energy, and to fulfill existing power station requirements, there will always be a demand for uranium. Once utility companies decide to replenish their seemingly bottomless stockpiles, price discovery should occur. This means that if investors can pick the right horse now, they could make some serious dough to go along with their yellowcake. The inner contrarian of every investor will be trying to break free: now could be the time to buy.
If an investor does decide uranium investment is the way to go, then how can one discern the company with the best risk to reward ratio? The answers lie in the experience of a company's management team in dealing with such a specialist commodity, the level of cash reserves to see it through until price discovery, and the quality of its asset.
Huhn then goes into the specifics of uranium assets, giving investors an inclination of what to look for. However, as every investor will know, not every boat is a luxury cruise liner: some are rust-plastered, hole-afflicted wrecks that will sink the second they leave the harbour. Huhn looks at the warning signs that investors should keep their eyes out for. Not every company will prosper, and many will find themselves at the bottom of an ocean.
Interview highlights:
- The Birth of Uranium Insider: Why Choose Uranium?
- Hopes for 2020
- Homework and Research: Where Does He Get Information From?
- Psychology of Investing: Why Stay Invested in a Stand-Still Market?
- What to Look for in a Company: The Fundamentals
- What to Look for in the Asset
- Promotion: The Power of Telling a Story Well
- The Future: Uranium Cycles, Price Discovery, Big Players and Possible Strategies
- An Overview of Macro: Not All Boats Will Float
- Red Flags and How to Spot Them
Website: https://www.uraniuminsider.com/
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