Boy am I glad I warned readers not to count on Donald Trump’s Nuclear Fuel Working Group (NFWG) lighting a fire under uranium stocks today. Word is out that the group has been given a 30-day extension.
Given the departure of John Bolton from the Administration, and hence the NFWG, the delay is no surprise.
Some investors seem to be reading more into the news, however. Despite most stocks on Wall Street staging a significant rally today, related uranium stocks are down.
Other investors are guessing that the delay is good news. Why delay if the group is not working on some new ideas for action to suggest to the president? Lots of reasons. Never underestimate the snail’s pace that can be inflicted by simple, intractable bureaucratic stupidity.
In my view, there’s no reason to see the delay as good or bad news.
Lower prices are another matter…
If you’re not interested in speculating on uranium plays at this time, fine. Move on.
But if you are, nothing else having changed, lower entry points are a clear plus.
Is it discouraging to keep suffering more delays?
Of course. Investor fatigue and boredom are major sources of contrarian opportunity.
I’m not saying I enjoy having to wait longer for payday. I am saying that I knew and said that something like this was likely this week—and that it is creating opportunity for those interested in this speculation.
Simple as that, that’s my take.
