We’ve almost hit bottom. Not too many investors want to think about what’s happened in the uranium market over the past two months, but we’ve got to take a good hard look at it. Now could be the time to move back in.

Following a meteoric rise in value, uranium has been nothing but falling in value over the past few weeks. And last Monday uranium prices fell another $15 and hit $90 per pound, the same value it was in early March.

Everyone wants to know if this is a short-term correction or will these price levels be the long-term reality of the uranium market? Shares of uranium giants have fallen drastically. Cameco (CCJ:NYSE) is down 29%. SXR Uranium One (SXR:TSX) has taken a 43% hit. And the smallest and most speculative uranium plays have been hit the hardest.

To be honest, I think there is some more downside ahead with uranium prices over the short-term. Uranium mining companies have been stellar performers over the past few years, but now there aren’t too many buyers out there.

Power companies have realized there’s plenty of uranium to go around for now and uranium producers are trying to sell as much as they can at current prices. There’s a lot of fear in the market and I’d dump any uranium exploration company that won’t be able to produce uranium profitably if uranium falls under $80 a pound.

As I write, Lori O’Connor of the BreakAway Investor research team is off to Uranium City in the heart of one of the world’s leading uranium-producing regions, Canada’s Athabasca Basin, to see what’s really going on up there.

For now, I’d sit tight on buying up too many more uranium exploration stocks. But we did see this coming. Not too many people really knew when, but we knew the upward swing in uranium wouldn’t last forever.

Meanwhile, one of my leading BreakAway Investor recommendations has been weathering the uranium storm fairly well and it’s poised to be a big winner regardless of where uranium prices eventually end up. Learn more about it here.

Good investing,

Andrew Mickey
Editor in chief, BreakAway Investor

 

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But this company could still rise another 407% by November.  The next run will soon start when the company releases important news.  Load up on shares now!

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