Dines pegs uranium as latest 'hot' story for investors

"When uranium was at the $8 US level (per pound in 2001), I became an arm'-waving, table-thumping optimist on the price of uranium," Dines, who has been publishing his letter since 1960, told Business Edge. The price of uranium has since skyrocketed to $29 US, according to Business Edge, but Dines is still pounding the table on the nuclear power play. He believes the uranium story is still in the early innings. He labels Saskatchewan "the next boom province" based on its wealth of high-grade uranium. "I think you're really lucky in Canada because between the (Alberta) tarsands and uranium I think you're going to come out of it (bear market) smelling like a rose," Dines tells the Edge. So what is Dines' prediction for the price of uranium? "I think there's going to be an all-out buying panic in uranium and I'm looking for a price between $50 and $100 US per pound. There's literally a shortage of uranium because the world is consuming approximately double what it's producing and the nuclear electrical facilities have to have that uranium when the lights go out. I'm looking for sky-high uranium prices even though they've nearly quadrupled from where I initially recommended it." While many investors are content to hit for singles, Dines loves to swing for the fences for tape-measure returns, and that's exactly how he's playing the uranium story. "We've got nine small uranium stocks on our list" that are primarily Canadian, says the author of three business books, including Mass Psychology. "I call them the nine chihuahuas because they're tiny companies. All these chihuahuas are running around the world right now and acquiring properties. I think eventually there'll be mergers. I've advised all these chihuahuas to go merge with each other to make one big alternative to (larger uranium companies) Denison Mines (TSX:DEN) and Cameco (TSX:CCO), but they don't listen to me."