The drop today bothered me. Why now? What news? By best guess is the news today "Bush administration yanks Russia nuclear pact"
On the flipside, 50% of current uranium consumption in U.S. is from decommissioned weapons. Won't cooler Soviet/US relations decrease the supply of this uranium and increase the fundamental economic value of the uranium controlled by CCJ?
Here is the best explanation I can find:
Bush administration yanks Russia nuclear pact
WASHINGTON (Reuters) - President George W. Bush on Monday froze a lucrative civilian nuclear pact with Russia, the first big penalty imposed on Moscow after its war with Georgia but one that can be reversed.
"The president intends to notify Congress that he has today rescinded his prior determination regarding the U.S.-Russia agreement for peaceful nuclear cooperation, the so-called 1-2-3 Agreement," Secretary of State Condoleezza Rice said in a statement read by spokesman Sean McCormack.
While Bush's decision to withdraw the agreement from congressional review was seen as punitive, it was also meant to preserve the deal, a senior U.S. official said.
That official said the administration wanted to ensure the accord did not go to a vote in Congress, where it could have been rejected following Russia's military action in Georgia. If rejected, it would be difficult for a new presidential administration to pursue the agreement in the future.
"It (the nuclear accord) was likely to be killed simply as a protest in the Senate and so therefore what we are doing is rescinding the certificate that he (President Bush) had to give due to the situation in Georgia. Thus he is rendering this thing not legislatively viable," said the senior U.S. official, who spoke on condition of anonymity.
"It is something that we can reverse at any time either by sending a new certificate or lifting this action," he added. "What it does is freezes the status of it." ...
Most likely explanation is hedge fund that have been long energy, metals and mining are still unwinding/deleveraging. For a long time the position long commodities/short financials was successful, now it really sucks. People are really wrapped up in this global slowdown scenario.
In case you haven't seen it before, mining shares can drop to ridiculously low prices in a recession. On the other hand, if the global economy is set to rebound and if you can guess when the funds are done unwinding you can make lots of money buying stocks like CCJ at a very low price. The problem is the stock price might always be cheaper tomorrow.
If you are a long term investor, and if you are diversified, don't panic because the tide will turn one of these days. Good luck.
Its always Bush's fault. Couldn't be the sector, or the trends has been negative, or the stock just sucks. I had the shi--s this morning, was that Bush's fault also? Market sucks and is unreliable and volitile. You should have been in cash months ago.