This Stock is Likely Headed Higher

India just bought a massive amount of uranium.

Last Wednesday, the country agreed to purchase C$350 million worth of the nuclear power source from Canada.

[ad#Google Adsense 336×280-IA]It’s the first nuclear contract between Canada and India in 40 years. And it’s a big deal for resource investors…

In March, I told you about the breakout in uranium prices.

They’re up nearly 40% since July 2014.

And with demand for uranium increasing in emerging markets, I said prices would continue to head higher.

You see, to continue to develop, emerging markets need sources of low-cost electric power. That’s where nuclear energy comes in. And emerging markets are rushing to build nuclear reactors.

The World Nuclear Association (WNA), an industry trade organization, says there are currently 65 nuclear reactors under construction in the world. Another 165 are in the planning stage. Most of these should be in operation within eight to 10 years. And another 331 plants have been proposed.

A lot of these reactors will be in India. After China, India is building the most nuclear plants in the world.

According to the WNA, India currently has 21 nuclear reactors. It’s in the process of building another six that should be online within a couple years. And it has another 57 reactors in the works. Of these, the WNA says 22 should be in operation within 10 years. Most of the other 35 should be in operation within 15 years.

Those are big numbers. Even if India shut down all of its current reactors – which is unlikely – in 15 years, it would have almost three times as many as today. By 2032, India expects to have 7.5 times more nuclear capacity than today.

To fuel these reactors, India and other emerging markets will need a lot of uranium. Canadian uranium producer Cameco (CCJ) expects annual world consumption of uranium to grow from 155 million pounds to 230 million pounds by 2024.

That’s why India recently agreed to buy C$350 million worth of uranium (7.1 million pounds of uranium concentrate) from Cameco through 2020.

The news of the deal sent Cameco shares soaring more than 7% in one day. And shares are likely headed higher…

Big deals like this make investors more aware of the improving uranium sector. And once they see demand for uranium is increasing along with prices, they’ll pour into uranium producers like Cameco.

I expect to see more uranium deals announced in the months ahead as India, China, and other emerging markets continue to build nuclear reactors and consume more uranium.

This will be great news for the share prices of uranium producers. If you want to set yourself up to profit, I recommend looking into Cameco today.

Good investing,

Brian Weepie

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Source: Growth Stock Wire