Cameco has overcome AMC Entertainment Holdings and GameStop to become the most discussed stock on Reddit’s WallStreetBets forum today, overtaking AMC Entertainment Holdings and GameStop. With a market value of $10 billion as of this posting, Engaging in activities is one of the world’s biggest uranium producers and the most significant uranium stock in the United States. Its stock was up 3% as of midday today, after a nearly 9% gain earlier in the day.
Commodities prices are typically at the heart of the commodity stock storyline. With uranium prices skyrocketing to historic highs, the narrative for uranium stocks is looking pretty good.
The CEO of the world’s biggest uranium fund, Rick Rule, thinks this is just the beginning. According to the Concept Physical Uranium Trust, uranium prices rose in July (OTC: SRUU.F). Since its inception in mid-July, the nuclear marketplace fund has been actively accumulating the actual material (in the form of natural uranium).
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Given that the entire nuclear industry sold 92.2 million pounds on the open market in 2020, according to Yellow Cake PLC, a U.K.-based company that buys and sells uranium, it’s a massive amount of uranium to purchase. To put it another way, the Sprott fund has purchased the equal of almost 27% of all uranium sold last year.
The fund’s entrance has increased uranium liquidity in the market and attracted new players, further strengthening spot purchases. All of this is taking place as the world’s two biggest uranium producers, Cameco and Kazakhstan’s Kazatomprom, maintain output low to maintain uranium prices stable.