Shares of Denison Mines Corp (AMEX:DNN), Cameco Corporation (NYSE:CCJ), USEC Inc. (NYSE:USU) and Uranium Resources, Inc. (NASDAQ:URRE), among other companies with significant uranium and nuclear exposure, have been taking a big hit since the middle of February and afterwards, as the earthquake and tsunami in Japan caused some damage to some of its nuclear reactors, which gave some pause to the industry, which had been flying high.
The most recent hiccup was the decision by Germany to shut all of its nuclear reactors by 2022, which resulted in a number of the companies taking another hit.
As Bill Gates recently stated, wind and solar may be "cute" industries, but nuclear is the future of energy, and is mostly the only choice to realistically meet the growing demands of the market.
In the U.S., natural gas is also a legitimate source, as the supply in the country is extraordinary, and could last for a century or more.
From the nuclear sector standpoint, Germany is irrelevant in the long term, as they only have 17 reactors, accounting for only about 5 percent of global uranium demand.
Other major nuclear demand comes from the U.S., which has 104 reactors; France with 58; and China, which has been on a huge nuclear built out, has 27 under construction at this time, another 50 in the planning phase, and 110 more proposed.
All that has happened is the time it'll take to get the new nuclear reactors operational may have been extended; at least that will be the official line fed to and reported by the media.
How many think that China and its vast need for energy has halted anything, no matter what they may assert to the media? They may have went over their safety measures, but the Japanese earthquake was a rare anomaly which can't really be planned for, and the idea we can live in a risk-free world is Utopian, not a reality.
So the nuclear industry will continue to grow quickly, although it will still be a long-term play for those investing in it, and will include a number of issues over the short term which will generate volatility, as in the case of Germany saying it's going to abandon nuclear.
Uranium Resources closed Friday at $1.73, falling $0.08, or 4.42 percent. USEC Inc. ended the session at $3.94, dropping $0.11, or 2.72 percent. Denison closed at $2.12, down $0.02, or 0.93 percent. Cameco Corporation closed at $28.15, declining $0.62, or 2.16 percent.
Showing posts with label Nuclear Energy. Show all posts
Showing posts with label Nuclear Energy. Show all posts
Monday, June 6, 2011
Friday, October 22, 2010
Natural Gas Disrupting Everything, Including Own Industry
In one of the most interesting and possibly long-term profitable plays at this time is the natural gas sector, which is not only disrupting other energy sectors, but is in fact disrupting itself.
For example, not that long ago nuclear energy looked like it was about to make a huge comeback, and in some places that may remain true, for example China, which has numerous nuclear plants on the drawing board.
But the recent discovery of the enormous amount of natural gas reserves there are in the United States, and other parts of the world, has made nuclear yesterday's energy news, as well as wind farms, and more than likely, ultimately the high-price solar sector.
What's more fascinating, are those companies with heavy natural gas exposure have disrupted themselves, as those who want to increase margins, and probably survive, are spending on increasing their oil exposure.
An amazing development when you think of it. The incredible amount of natural gas reserves are pushing us back to oil again. No matter how hard some may attempt to deny that, it's the absolute truth.
Natural gas companies will have to become experts at cutting costs in that segment, as supply is enough to easily last for decades, and possibly into the far future beyond that. This is talking about known reserves, which have increased exponentially.
In the short term oil remains the key energy source, although coal is right up their with it as far as percentage of use for energy in general.
Coal accounts for about 48 percent of electricity production in the U.S., but is expected to pull back to about 44 percent by 2015. Natural gas is expected to increase from 21 percent of electricity production to 25 percent by 2015.
The only thing that could upset this fantastic scenario for low price energy is the evil of radical environmentalists, who are devastating the United States and other parts of the world through lawsuits and pressuring lawmakers to create regulations which basically destroy energy use of any kind.
The only thing these hypocrites like is wind power, which of course, unknown to most, destroy wildlife, especially birds in bats at levels which would shock most people if the story was told.
BP's (NYSE:BP) small effect on animals and sea life makes them look like guardians of the earth in comparison to wind turbines.
This is where we should all draw the line and fight back so hard as to destroy these evil organizations and people who continue to hate the human race and inexpensive energy that makes their lives easier.
For example, not that long ago nuclear energy looked like it was about to make a huge comeback, and in some places that may remain true, for example China, which has numerous nuclear plants on the drawing board.
But the recent discovery of the enormous amount of natural gas reserves there are in the United States, and other parts of the world, has made nuclear yesterday's energy news, as well as wind farms, and more than likely, ultimately the high-price solar sector.
What's more fascinating, are those companies with heavy natural gas exposure have disrupted themselves, as those who want to increase margins, and probably survive, are spending on increasing their oil exposure.
An amazing development when you think of it. The incredible amount of natural gas reserves are pushing us back to oil again. No matter how hard some may attempt to deny that, it's the absolute truth.
Natural gas companies will have to become experts at cutting costs in that segment, as supply is enough to easily last for decades, and possibly into the far future beyond that. This is talking about known reserves, which have increased exponentially.
In the short term oil remains the key energy source, although coal is right up their with it as far as percentage of use for energy in general.
Coal accounts for about 48 percent of electricity production in the U.S., but is expected to pull back to about 44 percent by 2015. Natural gas is expected to increase from 21 percent of electricity production to 25 percent by 2015.
The only thing that could upset this fantastic scenario for low price energy is the evil of radical environmentalists, who are devastating the United States and other parts of the world through lawsuits and pressuring lawmakers to create regulations which basically destroy energy use of any kind.
The only thing these hypocrites like is wind power, which of course, unknown to most, destroy wildlife, especially birds in bats at levels which would shock most people if the story was told.
BP's (NYSE:BP) small effect on animals and sea life makes them look like guardians of the earth in comparison to wind turbines.
This is where we should all draw the line and fight back so hard as to destroy these evil organizations and people who continue to hate the human race and inexpensive energy that makes their lives easier.
Monday, August 23, 2010
Goldman Sachs (NYSE:GS) Newest Nuclear Power
With the acquisition of the commodities-trading operations of Constellation Energy Group (NYSE:CEG) in 2009, Goldman Sachs (NYSE:GS) became the recipient of a stash of uranium.
Nuclear reactors are becoming a fast and growing part of the strategy of many nations to provide energy, and uranium is becoming a hot commodity in a way it hasn't been for a long time.
Dozens, and more, of new reactors have been targeted for being built, and now the question of uranium supply is in the forefront of many people's minds, as a renewed race for nuclear energy emerges.
Goldman's uranium supply has drawn the interest of a growing number of entities, especially some of their larger clients, underscoring the quiet but growing fight for supply.
In regard to that, uranium companies have received significant investment over the last quarter, in anticipation of what will eventually become a perfect supply and demand situation where supply won't be able to keep up with demand, which will push up the price of uranium and companies that supply it.
I wonder if Goldman will sell now or hold on until the demand part of the equation soars?
Nuclear reactors are becoming a fast and growing part of the strategy of many nations to provide energy, and uranium is becoming a hot commodity in a way it hasn't been for a long time.
Dozens, and more, of new reactors have been targeted for being built, and now the question of uranium supply is in the forefront of many people's minds, as a renewed race for nuclear energy emerges.
Goldman's uranium supply has drawn the interest of a growing number of entities, especially some of their larger clients, underscoring the quiet but growing fight for supply.
In regard to that, uranium companies have received significant investment over the last quarter, in anticipation of what will eventually become a perfect supply and demand situation where supply won't be able to keep up with demand, which will push up the price of uranium and companies that supply it.
I wonder if Goldman will sell now or hold on until the demand part of the equation soars?
Friday, April 16, 2010
Wells Fargo (NYSE:WFC) Downgrades Exelon (NYSE:EXC)
Exelon downgraded by Wells Fargo
Exelon Corporation (NYSE:EXC), a utility services company, was downgraded today from “Market Perform” to “Underperform” by Wells Fargo (NYSE:WFC).
The valuation range of the stock was adjusted downward as well, from $42-44 to $36-38.
Wells Fargo explained the downgrade of Exelon this way, “We do not believe shares adequately reflect the current forward power price outlook and the diminished outlook for near-term passage of carbon regulations. We continue to view EXC’s unregulated nuclear fleet and operational track record favorably versus peers.”
Exelon Corporation (NYSE:EXC), a utility services company, was downgraded today from “Market Perform” to “Underperform” by Wells Fargo (NYSE:WFC).
The valuation range of the stock was adjusted downward as well, from $42-44 to $36-38.
Wells Fargo explained the downgrade of Exelon this way, “We do not believe shares adequately reflect the current forward power price outlook and the diminished outlook for near-term passage of carbon regulations. We continue to view EXC’s unregulated nuclear fleet and operational track record favorably versus peers.”
Thursday, April 1, 2010
Uranium a Long-term Play
Long term future of Uranium
There is no doubt uranium is going to rebound in the future, as demand will skyrocket at a time when supply will not be able to meet that demand.
Approximately 200 new nuclear reactors are scheduled to be built around the world, and including the 400 plus already out there, uranium will be needed to power them up for a long time to come.
In the short term though, uranium spot prices seem to have found a bottom at around $40, with maybe $45 being the top in the foreseeable future. There is little to indicate that will change in the next year or so, although there are some possibilities that could change that quickly.
For example, the major game-changer would be if China decides to go after uranium before the anticipated upswing in prices occur. While that would drive up prices some, it wouldn't be the same as if a large number of countries or companies were going after it at the same time.
China has done this with other raw materials in the past, and there's nothing to indicate they wouldn't do it again. If they do choose to go that route, then all bets are off on the prices mentioned about, and if they don't do that any time soon, prices should be tight around the figures mentioned.
Uranium is definitely a long term play, but for those looking to get into over a period of time, these prices are a good starting point, and they will only rise in the future.
Companies, indexes, futures and ETFs are all ways to invest in this increasingly important commodity.
There is no doubt uranium is going to rebound in the future, as demand will skyrocket at a time when supply will not be able to meet that demand.
Approximately 200 new nuclear reactors are scheduled to be built around the world, and including the 400 plus already out there, uranium will be needed to power them up for a long time to come.
In the short term though, uranium spot prices seem to have found a bottom at around $40, with maybe $45 being the top in the foreseeable future. There is little to indicate that will change in the next year or so, although there are some possibilities that could change that quickly.
For example, the major game-changer would be if China decides to go after uranium before the anticipated upswing in prices occur. While that would drive up prices some, it wouldn't be the same as if a large number of countries or companies were going after it at the same time.
China has done this with other raw materials in the past, and there's nothing to indicate they wouldn't do it again. If they do choose to go that route, then all bets are off on the prices mentioned about, and if they don't do that any time soon, prices should be tight around the figures mentioned.
Uranium is definitely a long term play, but for those looking to get into over a period of time, these prices are a good starting point, and they will only rise in the future.
Companies, indexes, futures and ETFs are all ways to invest in this increasingly important commodity.
Wednesday, March 31, 2010
Market Vectors Nuclear Energy ETF (NYSE:NLR) - Great Uranium Play
Market Vectors Nuclear Energy ETF
We continue to talk at Commodity Surge on the uranium industry, which is sure to explode in the years ahead, based on the over 200 new nuclear plants in various stages of planning or construction around the world. Market Vectors Nuclear Energy ETF (NYSE:NLR) is a great way to play uranium, and it has other benefits as well.
For example, the nuclear ETF is also a way to participate in emerging markets, as the vast majority of the nuclear plants will be built in those countries.
Even with attempts to increase production, the uranium mines in the world won't be able to supple the growing demand for uranium any time soon, and that ensures prices will eventually start to rise again as a consequence.
In the middle of 2007 uranium spot prices had reached as high as $136 a pound, but plunged along with everything else during the height of the economic crisis, to about $45 a pound today.
I don't see a much simpler and better way to invest in uranium unless you absolutely have the time to delve into every part of the industry. The other great things is low fees of an ETF and not having to deal with the prospect of trading in foreign markets. This applies to Market Vectors Nuclear Energy ETF because most of its holdings are tracked on foreign exchanges.
Any downside here? Sure. Like almost every investment today, much depends on the time a real and sustainable economic recovery arrives, and whether or not, or how long it takes, to enter another recession.
This is important because of the spending aspect of the sector, which would be cut back in a big way if things go sour economically again.
Even so, I look at this as a long-term play, and even if things go bad, I think nuclear commitment from countries around the world is here to stay. It's not a matter of if uranium prices will go up, it's only a matter of when.
Market Vectors Nuclear Energy ETF
We continue to talk at Commodity Surge on the uranium industry, which is sure to explode in the years ahead, based on the over 200 new nuclear plants in various stages of planning or construction around the world. Market Vectors Nuclear Energy ETF (NYSE:NLR) is a great way to play uranium, and it has other benefits as well.
For example, the nuclear ETF is also a way to participate in emerging markets, as the vast majority of the nuclear plants will be built in those countries.
Even with attempts to increase production, the uranium mines in the world won't be able to supple the growing demand for uranium any time soon, and that ensures prices will eventually start to rise again as a consequence.
In the middle of 2007 uranium spot prices had reached as high as $136 a pound, but plunged along with everything else during the height of the economic crisis, to about $45 a pound today.
I don't see a much simpler and better way to invest in uranium unless you absolutely have the time to delve into every part of the industry. The other great things is low fees of an ETF and not having to deal with the prospect of trading in foreign markets. This applies to Market Vectors Nuclear Energy ETF because most of its holdings are tracked on foreign exchanges.
Any downside here? Sure. Like almost every investment today, much depends on the time a real and sustainable economic recovery arrives, and whether or not, or how long it takes, to enter another recession.
This is important because of the spending aspect of the sector, which would be cut back in a big way if things go sour economically again.
Even so, I look at this as a long-term play, and even if things go bad, I think nuclear commitment from countries around the world is here to stay. It's not a matter of if uranium prices will go up, it's only a matter of when.
Market Vectors Nuclear Energy ETF
Tuesday, March 16, 2010
Illinois Removes Nuclear Plant Ban
Illinois removes nuclear plant ban
Seeing the handwriting on the wall, states are seriously started to look at increasing the use of nuclear power to meet their electrical needs, and the Illinois Senate voted on Monday to remove the ban on building new nuclear plants in the state; that after 23 years of forbidding new plants to be built.
In one hilarious response from an obviously disturbed and fearful person, they implied it would turn the state into a “radioactive waste repository.” Evidently the so-called activist hasn't heard you can now recycle nuclear waste and re-use it. Even if you couldn't it would still be very safe.
The measure passed by an overwhelming 40-1, and it now goes to the Illinois house for approval. Billions of dollars and many jobs are at stake for those wanting to get their share of the federal dollars being allocated for the building of the nuclear plants.
It's actually far past time nuclear power was re-introduced into the United States. The stupid and wasteful solar and wind power garbage does't work on a large scale, and nuclear is among the best there is out there.
Be on the lookout for uranium-producing companies, as they will be hot in the future as demand for the commodity surges.
Seeing the handwriting on the wall, states are seriously started to look at increasing the use of nuclear power to meet their electrical needs, and the Illinois Senate voted on Monday to remove the ban on building new nuclear plants in the state; that after 23 years of forbidding new plants to be built.
In one hilarious response from an obviously disturbed and fearful person, they implied it would turn the state into a “radioactive waste repository.” Evidently the so-called activist hasn't heard you can now recycle nuclear waste and re-use it. Even if you couldn't it would still be very safe.
The measure passed by an overwhelming 40-1, and it now goes to the Illinois house for approval. Billions of dollars and many jobs are at stake for those wanting to get their share of the federal dollars being allocated for the building of the nuclear plants.
It's actually far past time nuclear power was re-introduced into the United States. The stupid and wasteful solar and wind power garbage does't work on a large scale, and nuclear is among the best there is out there.
Be on the lookout for uranium-producing companies, as they will be hot in the future as demand for the commodity surges.
Friday, March 12, 2010
Cameco (TSE:CCO) Strongly Positioned for Nuclear Revival
Cameco Ready for Nuclear Revival
There is no doubt we're entering into an amazing time of nuclear revival for generating electricity, and one company positioned to take advantage of that is Cameco Corp (TSE:CCO).
Less than honest evaluations of the nuclear industry and safety has held back the much-needed source of electricity, but that has changed as France has shown that uranium, the chief fuel for nuclear plants can be safely recycled, and eliminates one major concern for the sector.
Another fuel that will probably gain acceptance going forward is thorium, which gives a more efficient burn than uranium and lowers the need for recycling.
For Cameco, they recently mentioned their uranium mine at Cigar Lake should produce up to 18 million pounds of fuel a year when it reaches full production.
Cameco Ready for Nuclear Revival
There is no doubt we're entering into an amazing time of nuclear revival for generating electricity, and one company positioned to take advantage of that is Cameco Corp (TSE:CCO).
Less than honest evaluations of the nuclear industry and safety has held back the much-needed source of electricity, but that has changed as France has shown that uranium, the chief fuel for nuclear plants can be safely recycled, and eliminates one major concern for the sector.
Another fuel that will probably gain acceptance going forward is thorium, which gives a more efficient burn than uranium and lowers the need for recycling.
For Cameco, they recently mentioned their uranium mine at Cigar Lake should produce up to 18 million pounds of fuel a year when it reaches full production.
Cameco Ready for Nuclear Revival
Thursday, March 11, 2010
Perma-Fix Environmental Services (Nasdaq:PESI) Skyrocketing
Perma-Fix Environmental Services' Profitable Future
Perma-Fix Environmental Services (Nasdaq:PESI) could have a nice run ahead of it for quite a while, as nuclear power is back on the menu, and the need for more energy is driving the market and a variety of companies connected to it in different ways.
The market has awarded Perma-Fix as the company tripled its earnings per share, and that was from performance, we're waiting to see how far it'll rise when the market factors in future earnings, which could be enormous.
While operating in three segments, the one that matters in relationship to nuclear is what the company describes as "treatment, storage, processing and disposal of mixed waste including off-site waste remediation and processing."
Chairman and CEO Louis F. Centofanti said this about the performance of the company in the last quarter: “We have strong cash flow with a clean capital structure and no intention to raise additional capital for the foreseeable future. As a result, we believe we are positioned to continue the growth of our business.”
The nuclear segment led the company in the fourth quarter, as gross margins surged to 31.6 percent from the 21.4 percent during the same quarter last year. Profits, as mentioned, almost tripled to 20.9 percent from 7 percent in the fourth quarter of 2008.
Perma-Fix Environmental Services' Profitable Future
Perma-Fix Environmental Services (Nasdaq:PESI) could have a nice run ahead of it for quite a while, as nuclear power is back on the menu, and the need for more energy is driving the market and a variety of companies connected to it in different ways.
The market has awarded Perma-Fix as the company tripled its earnings per share, and that was from performance, we're waiting to see how far it'll rise when the market factors in future earnings, which could be enormous.
While operating in three segments, the one that matters in relationship to nuclear is what the company describes as "treatment, storage, processing and disposal of mixed waste including off-site waste remediation and processing."
Chairman and CEO Louis F. Centofanti said this about the performance of the company in the last quarter: “We have strong cash flow with a clean capital structure and no intention to raise additional capital for the foreseeable future. As a result, we believe we are positioned to continue the growth of our business.”
The nuclear segment led the company in the fourth quarter, as gross margins surged to 31.6 percent from the 21.4 percent during the same quarter last year. Profits, as mentioned, almost tripled to 20.9 percent from 7 percent in the fourth quarter of 2008.
Perma-Fix Environmental Services' Profitable Future
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