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?
Showing posts with label Nuclear Reactors. Show all posts
Showing posts with label Nuclear Reactors. Show all posts
Monday, August 23, 2010
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
Wednesday, March 24, 2010
Bill Gates' Nuclear Strategy
Bill Gates and Small Nuclear Reactors
Bill Gates wants to put nuclear power in the hands of emerging nations via nuclear energy reactors fueled by the relatively harmless uranium-238.
Essentially what the miniature nuclear reactors would do, once they were boosted by enriched uranium, would be to run anywhere from 50 50 100 years without the need to refuel. The reactor would offer several hundred megawatts to the users.
That's according to TerraPower, a firm backed by Bill Gates.
Bill Gates wants to put nuclear power in the hands of emerging nations via nuclear energy reactors fueled by the relatively harmless uranium-238.
Essentially what the miniature nuclear reactors would do, once they were boosted by enriched uranium, would be to run anywhere from 50 50 100 years without the need to refuel. The reactor would offer several hundred megawatts to the users.
That's according to TerraPower, a firm backed by Bill Gates.
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
Tuesday, March 2, 2010
Caterpillar (NYSE: CAT): No Iran Sales
Caterpillar Doing Business in Iran
Caterpillar (NYSE: CAT) has taken the step of making sure none of its equipment is sold to Iran through any of its subsidiaries, as the company heads off any pressure from the U.S. government to clamp down on those still selling its products in Iran, although Caterpillar complies with existing regulations regarding doing business with Iran.
Most of this is in relationship to public-relations rather than legalities, as mounting pressure to cease doing business with Iran because of its nuclear aspirations has been growing.
A spokesman said this in a statement: Caterpillar "now has gone a step further by prohibiting its non-U.S. subsidiaries from accepting any orders for Caterpillar machines, engines and new parts where the subsidiary knows that the product would be shipped to Iran."
Caterpillar Doing Business in Iran
Caterpillar (NYSE: CAT) has taken the step of making sure none of its equipment is sold to Iran through any of its subsidiaries, as the company heads off any pressure from the U.S. government to clamp down on those still selling its products in Iran, although Caterpillar complies with existing regulations regarding doing business with Iran.
Most of this is in relationship to public-relations rather than legalities, as mounting pressure to cease doing business with Iran because of its nuclear aspirations has been growing.
A spokesman said this in a statement: Caterpillar "now has gone a step further by prohibiting its non-U.S. subsidiaries from accepting any orders for Caterpillar machines, engines and new parts where the subsidiary knows that the product would be shipped to Iran."
Caterpillar Doing Business in Iran
Monday, March 1, 2010
Investing in Market Vectors Nuclear Energy ETF (NYSE:NLR)
Market Vectors Nuclear Energy ETF (NYSE:NLR)
Nuclear energy is on the verge of making a huge comeback, and along with it will be those who understand the best ways to invest in uranium, which will struggle to supply the growing demand for the material.
America is going to bring some new nuclear reactors online, and the ever-demanding China has plans to build three times as many nuclear reactors to supply the needs of its people than the rest of the world combined.
Including nuclear reactor being planned, currently under construction, or in the approval stage, they number just under 500 across the world, showing the potential demand uranium will experience for years into the future.
One way to play this is through the Market Vectors Nuclear Energy ETF, which has a goal of mirroring the DAXglobal Nuclear Energy index as closely as possible after you take away various expenses and fees.
Another factor to keep in mind is the ETF has the normal practice of investing a minimum of 80 percent of its assets into global companies working in the nuclear energies business.
Market Vectors Nuclear Energy ETF (NYSE:NLR)
Nuclear energy is on the verge of making a huge comeback, and along with it will be those who understand the best ways to invest in uranium, which will struggle to supply the growing demand for the material.
America is going to bring some new nuclear reactors online, and the ever-demanding China has plans to build three times as many nuclear reactors to supply the needs of its people than the rest of the world combined.
Including nuclear reactor being planned, currently under construction, or in the approval stage, they number just under 500 across the world, showing the potential demand uranium will experience for years into the future.
One way to play this is through the Market Vectors Nuclear Energy ETF, which has a goal of mirroring the DAXglobal Nuclear Energy index as closely as possible after you take away various expenses and fees.
Another factor to keep in mind is the ETF has the normal practice of investing a minimum of 80 percent of its assets into global companies working in the nuclear energies business.
Market Vectors Nuclear Energy ETF (NYSE:NLR)
Monday, February 1, 2010
Uranium About to Heat Up?
Nuclear Reactors and Uranium Demand
According to the US Nuclear Regulatory commission, demand for and permission to build nuclear reactors in the U.S. has skyrocketed, and that could eventually result in a huge increase in demand for uranium.
Now that nuclear power is being encouraged and considered an increasingly important part of American energy policy, uranium could be a major beneficiary of that reality as demand should surge as nuclear reactors are built and come online.
According to the US Nuclear Regulatory commission, there have been requests for 26 new reactors to be built in the country, with six of them already being ordered. There are 104 commercial nuclear reactors operating in the United States, supplying almost 20 percent of the electricity of the nation.
The good news is also the United States has the fourth-largest amount of uranium under its soil, making it extraordinary that it isn't being used to propel the nuclear industry forward to meet the growing energy demand in the country.
As far as what type of effect this will have on uranium prices, there can be no doubt what that will be. Uranium demand will increase; it's only a matter of when and how much.
Nuclear Reactors and Uranium Demand
According to the US Nuclear Regulatory commission, demand for and permission to build nuclear reactors in the U.S. has skyrocketed, and that could eventually result in a huge increase in demand for uranium.
Now that nuclear power is being encouraged and considered an increasingly important part of American energy policy, uranium could be a major beneficiary of that reality as demand should surge as nuclear reactors are built and come online.
According to the US Nuclear Regulatory commission, there have been requests for 26 new reactors to be built in the country, with six of them already being ordered. There are 104 commercial nuclear reactors operating in the United States, supplying almost 20 percent of the electricity of the nation.
The good news is also the United States has the fourth-largest amount of uranium under its soil, making it extraordinary that it isn't being used to propel the nuclear industry forward to meet the growing energy demand in the country.
As far as what type of effect this will have on uranium prices, there can be no doubt what that will be. Uranium demand will increase; it's only a matter of when and how much.
Nuclear Reactors and Uranium Demand
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