“I think upward in fits and starts is the direction,” said Nick Hodge of Daily Profit Cycle about uranium prices.
Now that uranium is moving after years of low prices, how should investors proceed?
Nick Hodge, editor of Daily Profit Cycle, said that right now his best advice for those with money in the space is to stay in long enough to maximize their gains.
“(Prices) can go higher than you think they can go, and the hardest part is staying in long enough to maximize your gains — not selling too early,” he told the Investing News Network.
He emphasized that portfolio management is key, noting that market participants should consider selling a tiny bit when appropriate, but should maintain enough exposure to participate in future gains.
In terms of where he’s focusing, Hodge said he’s looking at companies across the spectrum, from uranium explorers all the way up to developers and producers. Everyone is different, and he said it’s important for investors to consider the level of risk they can tolerate.
Despite the excitement seen over the last several months, Hodge believes it’s not too late to get into the market. He pointed out that the US$50 to US$60 per pound level is typically cited as the price required by producers, and although it’s been making moves, uranium isn’t there yet.
However, it’s important to be prepared — a complicating factor today is that things tend to move faster than they did during the last uranium bull cycle because it’s so easy for information to spread — that can mean gains happen more explosively. “I think upward in fits and starts is the direction,” said Hodge.
Watch the interview above for more of his thoughts on uranium.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Skyharbour Resources (TSXV:SYH,OTCQB:SYHBF), which is mentioned in this interview, is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.