John Manfreda asks the question and supplies some of the answers in summary -
1. Why Japan had to restart its nuclear reactors.
2. What Japan's restart of its nuclear reactors means for the uranium sector.
3. China and Russia's plans for increasing their nuclear capacity will be another catalyst for a uranium bull market.
4. Why Cameco is a good stock to buy for the upcoming bull market in uranium.
Manfreda opines that the uranium price would likely start increasing in 2013, but he was wrong. In 2014-15, he thought maybe Japan would restart its nuclear reactors, and the bear market would end, and he was wrong. But the old saying is, you are wrong until you are right, or you are right until you are wrong, and recent events might restart a long overdue bull market in uranium.
Recently, Japan restarted its first nuclear reactor since the Fukushima accident, and its second reactor is scheduled to come online this October. But what is more encouraging, is that Japan has lifted its evacuation order in the town close to the Fukushima plant. One of the reasons he has been incorrect over the past couple of years was because he forgot what Keynes said, and that is, that the market can act irrational longer than you can remain solvent. Now he is not a Keynesian by any stretch of the imagination, but when it comes to that quote, he is correct. Rationally, Japan needed nuclear power, and rationally, Japan was going to restart its uranium reactors. But irrationally, due to political unpopularity, they keep their nuclear power plants offline for an extended period of time. Since 2012, he thought that Japan would inevitably restart its nuclear reactors for two reasons. The first reason has to do with economics, and the second reason is due to supply chain concerns. Since Fukushima, electricity rates in Japan have increased roughly 20-30 percent, and its trade surpluses quickly evaporated after the Fukushima accident, and have turned into trouble.
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