Closing of Soviet Era Nuclear Agreement Helps These Nuclear Companies

With just five weeks remaining in the 20-year Megatons for Megawatts program, the reality of this highly successful program's demise is starting to set in. For those not familiar with the program, this was an agreement whereby Russia would convert high enriched uranium (HEU) from Soviet era warheads and convert them into low enriched uranium (LEU) the U.S. bought for use in domestic nuclear plants.

The end of this deal has been greatly documented. However, if the U.S. is truly set on meeting stringent 2020 carbon laws, nuclear power must still be part of our energy future. This has me thinking there could be a mad scramble by corporations to secure quality uranium assets right here at home, which has me excited about the potential for increased M&A activity in the sector, especially since it appears the price of uranium may finally have bottomed post-Fukushima. Cameco (NYSE: CCJ  ) has publicly stated its desire to acquire assets that are more near-term when it comes to production, so it may be hard to ignore Energy Fuels (UNKNOWN: EFRFF.DL  ) , a company with fully licensed and permitted uranium and vanadium assets. The company, which recently completed a 1 for 50 reverse stock split and is seeking a public listing on a major U.S. exchange, has assets adjacent to Cameco's property in the Gas Hills that may yield 10 million pounds of uranium so these neighbors getting together may not be so inconceivable. This idea is further strengthened by Energy Fuels gaining new partners in Sumitomo and Kepco as a result of its recent Strathmore acquisition. 

OPEC hates it, Buffett loves it
Imagine a company that rents a very specific and valuable piece of machinery for $41,000… per hour (that’s almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company’s can’t-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we’re calling OPEC’s Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock… and join Buffett in his quest for a veritable LANDSLIDE of profits!


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2732999, ~/Articles/ArticleHandler.aspx, 10/20/2014 7:32:52 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 16,380.41 263.17 1.63%
S&P 500 1,886.76 24.00 1.29%
NASD 4,258.44 41.05 0.97%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/17/2014 4:03 PM
CCJ $16.49 Up +0.56 +3.52%
Cameco Corp (USA) CAPS Rating: *****
EFRFF.DL $0.00 Down +0.00 +0.00%
ENERGY FUELS INC O… CAPS Rating: No stars

Advertisement