Uranium Stocks to Watch
As many of our followers already know, uranium stocks were in play just a few months back. We followed Cameco Corp. (CCJ:NYSE) periodically on our stocks to watch list during the Japanese Earthquake and Fukushima crisis. At that time the bears were in control of the uranium space, and hedge funds and day traders alike, seemed to short every rally. In my opinion the uranium space was by far the best way to trade the news flow out of Japan at the time.
Right now, with the recent U.S. debt crisis and European uncertainty, uranium stocks have taken a back seat in the negativity department, and some of the names in the group seem to be in a technical basing pattern. In other words, barring another disaster, the worst might be behind us. Right now there are 440 operating nuclear reactors worldwide and just last week, CLP Holdings Ltd , who is Hong Kong’s largest power supplier, announced that it’s agreed to invest almost $11 billion in a new nuclear power project in southern China.
In other words, there is, has been, and will be investment in the nuclear power space simply because of the billions of dollars that have been invested already, despite any bias coming out of the U.S. and Europe. Now what does that mean for uranium prices ? Well that’s a tough one due to the volatile nature of the commodity. For now, we just want to highlight a few names, just in case you decide to dabble in the group at some point.
Uranium Stocks CCJ, URG, NUCL
Cameco Corp. (CCJ:NYSE) CCJ is the flagship uranium stock and produces more than 15% of the world’s uranium. Shares have recently pulled back from recent highs and are currently trading at a little more than 21x earnings. Remember, if the group gets hot again, CCJ will be at the top of many fund managers lists.
UR-Energy (URG:AMEX) At this point uranium stocks are quite speculative, but URG takes speculation to another level because they are a small mining company. URG has a market cap of under $200 million, but is fairly liquid. Shares are very sensitive to the underlying commodity price, but are a good way to play the sector in a risky fashion. URG was also just recently added to the Russell 3000 Index.
IShares S&P Global Nuclear Energy ETF (NUCL:NASDAQ) This ETF gives a uranium bull a more diversified approach to the nuclear energy space. NUCL invests in industrial, utility and material stocks which spreads out individual stock headline risk. However, NUCL is extremely illiquid and regularly trades under 5k shares a day, but still can make sense for bulls with a long term view on uranium stocks.
Get more info on Uranium Stocks from our FREE eMail list
More Penny Stock News, IPO Updates and Stock Market Research.
***Sign up above for FREE Uranium Stocks Alerts from our eMail list***
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
Penny and Small Cap Stock Alerts