October 2, 2013

[su_quote cite=”King Solomon” class=”wwd-post”]”As iron sharpens iron, so one person sharpens another.”[/su_quote]

Dear Future Money Trends.

I would love to meet you at the end of the month! If you are interested, I will be speaking at a real estate conference October 27th on the state of the real estate market, specifically the “rental boom” I see. The conference is October 26-27th and will cover everything you need to know about real estate investing with NO up-sell. I spoke at the conference in July and I can assure you, it doesn’t lead to another seminar, books, or high priced coaching program. These guys are all about educating you and helping you buy rental properties throughout the U.S. Click here for more information.

Earlier this week we introduced you to a new trend investment, Uranium Energy Corp (UEC) and yesterday we released our 5th extra income idea to our Smart Money Newsletter members. Today, I would like to take some of the common objections and questions I have received for the past few days and go over them publicly.   I think these type of conversations will make us all better investors.

Josh M. writes:

I totally get the uranium trend and why you are so bullish, but my biggest concern is what if we have another Fukushima type event?

1 in 5 Americans rely on nuclear energy. In other industrialized nations, like France, it is as high as 4 in 5 people. Nuclear energy is not going away, in fact with oil rising, the cheap and highly reliable source of energy will continue to play a very important role in the urbanization of the rest of the world.   Many steps have been taken in the nuclear industry for this not to happen again, however this will always remain a risk. As you know the world survived Three Mile Island in 1979 and Chernobyl in 1986. The world needs nuclear energy, like I said, it is where 20% of Americans get their energy from; so as long as someone wants to turn on a light switch we will have a demand for uranium.

Marvin J. writes:

I am a current shareholder of UEC and was very happy to see your coverage, I learned a lot about my own holding. Casey Research had sold it to me as a top energy pick, only I paid $900 for it. Glad to see you are giving such high quality picks for free. My question is, when to sell?

We plan to keep a close eye on UEC with quarterly updates. We don’t see ourselves backing off UEC until uranium rises dramatically and even then, because of the management and projects, UEC is a great long term hold (10 years or more). For now, we simply need to allow things to play out and unfold in the uranium market.   I can easily see UEC being a $15-$20 stock if uranium simply goes back to its 2008 high. Remember, prior to Fukushima, UEC traded for over $7 a share, that was with half the resources and before they became a producer. Now they are a producer with 2 more mines coming online over the next 18 months, and they have more than doubled their in ground resources.

Kay L. writes:

Why would I buy something that keeps going down? Uranium has had one direction since 2010 and I don’t see why that will change.

Please re-read our profile, in it we cover exactly why we believe uranium is set for a dramatic price increase and why UEC will be a huge benefactor of that rise. In that report we stuck with the numbers, it clearly shows an inevitable rise, and with the Russian nuclear warhead treaty ending next month, we believe the rise in uranium is imminent.   Remember, uranium mine production has NOT been able to keep up with demand for 20 years, it is only due to the conversion of Soviet-era warheads into uranium that has kept the supply up.   Demand by the numbers

432 Reactors operable in 31 countries today
68 New reactors under construction
162 Reactors planned
316 Reactors proposed
13.5% of all electricity comes from nuclear, 20% here in the U.S. and 75% in France

As legendary resource investor Rick Rule has said, these investments take courage. It’s easy to buy when something is going up, but remember, in order to sell high you have to buy low. Uranium right now is at a low; and in my opinion it is time to buy.

Gina R. writes:

Is there a way to just buy a uranium ETF, much like the GLD for gold?

Not at this time. However, UEC is the only unhedged uranium producer, so when uranium does rise, they will see profits rise in proportion which should reflect very positively in their share price.

Lee K. writes:

How many shares of UEC should I buy?

It all depends on your age and circumstances. I always recommend no more than 5% on any single position and no more than 5% of more speculative ideas. Though UEC is a producer who has more than doubled their in ground resources over the past 18 months, we still need to see uranium rise before they become what we would call a safe investment.

Mike G. writes:

Is it possible to own UEC through another exchange so I don’t have exposure to U.S. dollars?

No, but it doesn’t matter. If the dollar crashes or has a dramatic decrease, uranium should rise priced in dollars. It is important to remember that the dollar is a medium of exchange, so it acts as a measuring stick. If the dollar loses value, then it will simply take more dollars to purchase things.   It’s the same with gold. People own gold as insurance against the dollar, however when most sell gold, they turn it into dollars. Try and look at the dollar as just a medium of exchange into whatever real asset or service you need. Gold is a store of wealth, but anything can be a store of wealth; it’s just that gold is the best one since it is portable, reliable, indestructible, and has a history of monetary demand. Owning a uranium stock is more of an investment, however, it is backed by the business and resources in the ground, so it can also be a place where wealth is stored.

Lisa P. writes:

For the Smart Money Newsletter, why charge for it? If you are really trying to help people make more money, than help us, you shouldn’t need any kind of compensation.

In order to hire the best people and give you our unbiased opinions, we have to exchange our time for money. Remember, by becoming a Smart Money member, you are paying $20 a month for 640 hours of research done by others. We keep the price low in order to try and make up our income on volume, however we know that other Newsletters charge as much as $5,000 a year for these type of ideas. This service includes extremely safe undervalued stocks, extra income ideas, consulting, and in-depth studies on future trends. At anytime you can ask to speak with us, you can also cancel at anytime.   In my opinion, this is the best value in the world of finance. I’ve been to all the seminars for real estate, stocks, and investing. Read every book and spoken to all the best minds. I’m practically giving all of it away for free at $20 per month. I personally have paid up to $5,300 for a single seminar, of which I am happy to share all this information with our Smart Money Members.   If this interests you, please test it out for 3 days and cancel it if you don’t like it.

Leonard A. writes:

For UEC, I plan to buy shares today, but wanted to know when I can expect updates from you guys?

We plan to do quarterly updates, however at anytime you can email us if you have a question or concern. Obviously if any major developments happen, we will also alert you.   This weekend we plan to meet with Amir Adnani, CEO of UEC at the Casey Summit. I am sure we will have an update for you by the end of next week, as well as a video interview with him.

Have a prosperous week!

Daniel Ameduri


Share Disclosure: I am long UEC.

Compensation Disclosure is compensated with ten thousand Restricted shares and six thousand eight hundred dollars per month for a one year IR agreement that included an initial five thousand start up fee. Compensation was paid directly by the company. previously received thirty five thousand dollars by Lake Group Media to benefit Uranium Energy Corp for an investor awareness marketing campaign that expired as well as fifty thousand dollars by Lake Group Media to benefit Uranium Energy Corp for an investor awareness marketing campaign for one week that has since expired. Lake Group Media was hired directly by Uranium Energy Corp in the previous instances.