I had the chance of speaking with Rick Rule on May 9, 2022.
Rick Rule and I talked about what’s happening with uranium, and the uranium stocks, how he picks exploration companies, which his favorite uranium stock is, and we discussed Rick’s stance on platinum investing in 2022.
is the crash in uranium stocks over?
When asked “Are uranium stocks done crashing?” Rick Rule answered this:
“My suspicion is that there was some reflexes-selling around the failure of Sprott to be able to list the SPUT on the NYSE. I was disappointed, but not surprised. However, I think that investors – as usual – have taken a very short-term view, which I think is incorrect”.
Rick Rule believed that the uranium equities had gotten ahead of themselves and because he think the value of the equities is going higher over the long term, he is happy to see short-term selling, which he thinks comes from the failure of SPUT to list on the NYSE, as well as a general push to sell from the market correction. His suspicion is that margin calls have also added to the recent pain in uranium stocks.
has Rick Rule sold his uranium stocks or is he buying?
No. To both. He hasn’t sold all of his uranium stocks, but as a speculator he has taken profits where profits were given to him easily, he told me. Most of his positions are already de-risked.
He is also not yet buying, though. Rick Rule also told me that “there will be a time to go all-in”. He gave me a very interesting example of a time when he went all-in on an investment. It involved oil, and not uranium, but it was a good example nonetheless.
is the uranium bull run still going?
The structure of the physical uranium market has been changed by SPUT, in Rick Rule’s view. He believes that to be very bullish over the long term and remains invested in uranium stocks, although he alleged to already have taken some profits in an effort to de-risk his position.
Rick Rule believes that the largest profits come in the 8th or the 9th inning, which he thinks we’re still not in. He told me that he expects the biggest profits in uranium to be in front of us rather than behind us.
is Kazatomprom still Rick Rule’s #1 uranium pick?
Rick has been known to call Kazatomprom “the best” from a risk-reward perspective. Given that Kazatomprom has underperformed its peers and even the ETF in the last six months, I had to ask him about that as well and he said “Absolutely”, when I asked him in KAP is still his favorite risk-reward play.
When it comes down to picking exploration stocks, Rick told me that “you make money by employing new ideas in old places or old ideas in new places, but never by employing old ideas in old places”.
is Rick Rule still bullish on platinum?
Shortly said, yes. Rick Rule is still very bullish on platinum. Rick’s favorite platinum jurisdiction is Brazil.
Rick Rule 2022 symposium
Rick is holding a symposium in Boca Raton, Florida, on July 26 to July 29, 2022.
Find out more about it by clicking here.
timestamps:
00:00 important warning
01:10 Are uranium stocks done crashing?
06:25 Will the uranium equities outperform the spot price over the long term?
11:30 Are the largest gains in uranium stocks still ahead of us or are they behind us?
15:10 Are we in the 6th inning with uranium stocks?
18:30 When does Rick Rule go all in?
24:00 When will Rick Rule sell all of his uranium stocks?
27:45 How does Rick Rule value uranium exploration stocks?
35:00 Is Kazatomprom still the best risk-reward in uranium?
39:00 Does sentiment in uranium matter to Rick?
42:00 What matters most in uranium today?
44:00 Is Rick still bullish on platinum?
46:40 Is oversupply an issue for platinum?
48:30 How would Rick Rule approach platinum investing?
50:00 Which jurisdiction makes sense for platinum investing?
52:00 Rick Rule’s holding a symposium
important warning
Antonio Atanasov is not an investment advisor. The information provided in this publication – and all other publications by Resource Talks – is impersonal in nature and meant for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple licensed, experienced, and qualified investment advisors. Get numerous opinions before taking your own decision in the end. The minimum risk on any investment mentioned in this publication is 100% loss of capital.
Shortly: you will lose all of your money if you listen to talking heads on the internet. Especially if they have orange hair and no experience (me).
Readers are cautioned that this presentation likely contains forward-looking statements about expected future events and the financial and operating performance of any companies potentially discussed herein. Reality often varies from people’s expectations. Managements like over-promising and under-delivering. If a manager was speaking in here, beware. Readers are encouraged to read the Cautionary Note on Forward-Looking Information and to consult the Company’s Annual Information Form, which is available on www.sedar.com. Reading the full disclaimer on the disclaimer page on this website is mandatory.
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Was there something wrong with what the guest said? Did I fail to ask an important question? Please tell me about it. Criticism and skepticism are highly welcome.
