Three stocks that could rocket on Klaproth’s discovery
Wednesday, 17 October 2018
By Bernd Struben
- Locking in the next boom
- The highly successful trader you’ve never heard of
- ‘Trump Ridicules US Senator’s Native Claims…DNA Tests Back Him’
You’ve surely heard of Albert Einstein. You’re probably familiar with Robert Oppenheimer as well.
But what about Martin Klaproth?
If the name doesn’t ring a bell, don’t worry.
Klaproth never became a household name like Einstein.
Einstein, among his many other brilliant contributions to science, made the connection between mass and energy. The one that goes E = mc2.
Oppenheimer’s arguably more notorious fame comes from his leadership of the Manhattan Project in the 1940s. That’s when the US went all out to develop an atomic bomb after the Japanese attacked Pearl Harbour. Oppenheimer’s team, as you know, was successful.
So what about Martin Klaproth?
Well, he discovered uranium back in 1789.
Now Klaproth would have had no idea of the impact uranium — and plutonium — would have on the world in the 20th Century.
Not the atomic bombs. And not the uranium-fuelled nuclear power plants that promised to provide clean, abundant energy to the world in the latter half of the 20th Century.
While those power plants got off to a promising start, there have been some major setbacks to nuclear power over the past 40 years. Think Three Mile Island in the US. Or Chernobyl in the Ukraine. And more recently the Fukushima disaster in Japan following the devastating Tsunami.
The fallout — the economic kind, not the nuclear variety — saw demand for uranium and new nuclear plants take a big hit over the last decade. Just have a look at the 10-year price chart below:
Source: Trading Economics
Click to enlarge
That’s not a pretty picture for uranium miners…or uranium investors.
But the thing with long-term charts like this is that they obscure big short-term moves.
So let’s take a look at the one-year chart:
Source: Trading Economics
Click to enlarge
Since mid-April uranium has been on a tear.
Investors are cottoning on to a likely sustainable uptick in demand from nations around the world. Including behemoths like India and China. Even Scott Morrison has just opened the door to nuclear power in Australia.
That adds up to good news for Australia’s economy.
Australia began mining Uranium in 1954. And according to the World Nuclear Association, Australia’s known uranium resources are the world’s largest. In fact, Australia has almost one-third of the world’s total uranium.
While we have the largest estimated resources, Australia ranks third on the global producer list, behind Kazakhstan and Canada.
That’s the big picture, anyhow.
Drilling into the details, Greg Canavan has found three small Australian uranium stocks he’s convinced are set to boom over the next 14 months.
In fact, he says if you invest $500 into each of these three tiny stocks you could make $16,375 by December 2019. That’s a 992% return, in time for Christmas 2019.
More after a look at the markets, where almost every major global index enjoyed a solid rebound.
Overnight the Dow Jones Industrial Average closed up 547.87 points, or 2.17%.
The S&P 500 gained 59.13 points, or 2.15%.
In Europe the Euro Stoxx 50 index finished up 46.97 points, or 1.46%. Meanwhile, the FTSE 100 gained 0.43%, and Germany’s DAX closed up 162.39 points, or 1.40%.
In Asian markets, Japan’s Nikkei 225 is up 262.58 points, or 1.16%. China’s CSI 300 is up 0.02%.
In Australia, the S&P/ASX 200 is up 67.00 points, or 1.14%.
On the commodities markets, West Texas Intermediate crude oil is US$72.70 per barrel. Brent crude is US$81.69 per barrel.
That’s a 1.2% bump in the price of WTI overnight, partly driven by investor fears over potential tensions between the US and Saudi Arabia.
Those tensions, as we covered over the past two days, revolve around the apparent murder of journalist Jamal Khashoggi inside the Saudi embassy in Turkey. Khashoggi was a high profile critic of the Saudi royals.
The mainstream media appear happy to fan investor angst. The Australian Financial Review ran this headline today, ‘US, Saudi Arabia tensions set to push up oil prices’.
‘The simmering tensions between the United States and Saudi Arabia could push the price of oil higher, although analysts are doubtful it will push past $US100 a barrel.
‘Higher oil prices would have a broad impact on Australia…’
Maybe so. But the way I read the tea leaves, these fears will likely turn out to be nonsense.
Donald Trump, of course. A man that conventional politicians and analysts cannot wrap their orthodox minds around.
Fortunately, or perhaps worryingly, your editor has no such short comings.
Trump is already criticising the growing global condemnation over the assumed murder. He’s come out in defence of both Saudi King Salam and Crown Prince Mohammed bin Salman, saying they deny any knowledge of what may have occurred.
In an interview with the Associated Press Trump went a step further saying, ‘Here we go again with, you know, guilty until proven innocent’.
The US Congress might join European nations and others in calling for sanctions against Saudi Arabia. But Trump will oppose them every step of the way. And if it comes down to it, he can override any Congressional action by declaring it an issue of US national security.
This tragic story will take some time to play out yet. But in the end, a few out of favour Saudi intelligence operatives will likely bear the blame. The Saudi royals will sit back in their palaces. And the oil will keep flowing…
Turning to gold, the yellow metal is trading for US$1,225.62 (AU$1,716.31) per troy ounce. Silver is US$14.68 (AU$20.56) per troy ounce.
One bitcoin is worth US$6,528.38.
The Aussie dollar is worth 71.41 US cents.
Locking in the next boom
There are a number of factors driving the rebound in uranium demand.
Better technology enabling for safer — and even smaller, portable — nuclear reactors is one of them.
And the global push for clean, reliable power sources is certainly another one. Especially in a world that the UN expects will add almost four billion more people by 2100…all while cutting emissions.
Take last week’s UN Intergovernmental Panel on Climate Change report, for example. The UN boffins say it will cost the world — read developed nations — $3.4 trillion per year through 2100 to combat climate change.
And Australia is being raked over the, erm, coals for our recent bump in emissions. A rise which, not incidentally, is roughly equivalent to Australia’s population growth rate.
We’ve also been informed we’ll need to do away with our high emissions beef industry…and change our diets. And forget about your petrol cars. We all need to go electric (EVs).
Which begs the question, how will you charge all those new EVs?
China, for one, is banking on nuclear energy.
As Greg writes in his investment report, ‘Element U’:
‘The Middle Kingdom’s appetite for nuclear power is huge. And it will only increase from here on in.
‘Beijing has allocated $2.4 trillion to expand its nuclear power generation by 6,600%.
‘There are 36 operational nuclear reactors today. Each one generating clean, green electricity.
‘But China isn’t stopping there. There are another 20 reactors under construction…and more than 100 planned.
‘It’s estimated China will have 58 gigawatts of nuclear powered electricity ready to tap by 2020. Almost double the 30.7 gigawatts available now.’
That’s just Chinese demand.
India and Russia are also working to massively increase their nuclear power capacity.
And, as mentioned above, even Australia’s government is considering lifting its 1998 ban on nuclear power.
From the Australian Associated Press:
‘Prime Minister Scott Morrison says he’s open to the idea of nuclear power if research emerges showing it stacks up economically…
‘“I’m totally open to that work,” he told Sky News on Tuesday. “But what we need to do is make sure it can stack up and we can successfully move in that direction.”
‘Mr Morrison said the source of Australia’s energy doesn’t bother him and he isn’t interested in an ideological debate.’
Connecting the dots, the picture for uranium — and uranium stocks — hasn’t looked brighter in decades.
I don’t have the time or space to go into all the details here. Greg Canavan covers all of that in his superb research report, ‘Element U’.
And with one eye always on making his readers money, he recommends three small Australian uranium mining stocks he expects could each be 10-baggers (that’s 10 times your money) by December 2019.
The highly successful trader you’ve never heard of
Some traders make people — and themselves — lots of money. And their names get splashed across the financial news headlines.
Other traders do just as well yet live their lives in quiet anonymity. Which is just how they like it.
After some cajoling, Port Phillip Publishing has managed to draw one of the latter kind of traders out from under his proverbial rock. And we’ve convinced him to share his unique trading insights exclusively with our readers.
That’s all I can tell you today. But be sure to tune in to Port Phillip Insider on Friday, when we’ll feature a special guest essay from one of the most successful traders in Australia that few have ever heard of.
Finally, here’s the latest on the floundering Trump ‘witch hunt’ from The Australian Tribune:
‘Trump Ridicules US Senator’s Native Claims…DNA Tests Back Him’
‘Merely mentioning the issue in Australia’s domestic politics could put you in violation of section 18C of the Australian Federal Racial Discrimination Act.
‘The issue in question being, just how much native blood do you really have?
‘While it can be an extremely sensitive matter, it’s not an invalid question to ask when a politician stakes their reputation on being native.
‘US President Donald Trump has long derided US Senator Elizabeth Warren’s claims of…’
If you’re fed up with sanitised, politically correct dogma cut and pasted from one mainstream source to another then The Australian Tribune is for you.
And it’s absolutely free.
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