Antinuclear

FNArena News – By Rudi Filapek-VandyckFebruary 16 2010Investors and uranium market enthusiasts may want to pay attention as two stockbrokers in Australia used last week’s somewhat disappointing results release by Paladin Energy (PDN) to reiterate their negative view both for uranium companies and for the short term outlook for spot U3O8 prices. GSJB Were and Deutsche Bank believe investors better not expect too much, in the shorter term.

A closer look into the matter has revealed that even stockbrokers with a more upbeat view don’t expect too much firework from the sector in 2010. Both Macquarie and UBS forecast spot prices will average circa US$47/lb this year, down from an average of US$52/lb in 2009. In other words: uranium is not expected to join the recovery elsewhere in the commodity space anytime soon.

To make matters worse: both GSJBW and Deutsche suggest uranium stocks are on a relative basis too expensively priced when compared to sectors that have a much better growth outlook, like iron ore producers and developers……. As shown by industry consultant TradeTech’s latest market update, overall activity in the sector has slowed down significantl… As overall activity has come to a near halt, sellers are willing to lower their expectations and thus spot prices continue to battle downward pressure, reports TradeTech. Its weekly spot price indicator has now fallen another US25c to US$42/lb.