Uranium Stocks Awake Like Lazarus

Uranium stocks have been laggards in the energy sector, largely due to concerns about safety issues after the tragic Fukushima incident in Japan. Since the event, there has certainly been investor aversion to the space, especially since Germany moved to abandon its nuclear program to focus on renewables. Yet that move has caused a surge in power prices, largely due to renewables maybe being asked to do too much too soon in the aftermath of Fukushima. With that said, subsidies galore in Germany are now being curtailed and lofty power prices remain, well, lofty. 

China recently announced it would put another five reactors into operation this year. Japan, yes the same Japan that experienced Fukushima, may restart 10 out of 50 reactors this year after safety reviews, according to Bloomberg News. Here at home, the U.S. is forging forward with supporting development of small modular reactors (SMRs). Add on top of that a growing concern about focusing on reducing global carbon issues, and nuclear power is quietly starting to regain investor interest. This, coupled with uranium moving above $35 per pound (still down from pre-Fukushima levels above $70), is likely behind the upside moves with above-average trading volume seen recently in shares of Energy Fuels (NYSEMKT: UUUU  ) , Denison Mines (NYSEMKT: DNN  ) , Cameco (NYSE: CCJ  ) , Uranium Energy Corp. (NYSEMKT: UEC  ) and the Global X Uranium ETF (NYSEMKT: URA  ) .

Discover our top stock pick for the new year
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (3)

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: 2808102, ~/Articles/ArticleHandler.aspx, 10/22/2014 7:20:14 PM

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...


Advertisement