Making the Right Nuclear Energy Investment

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 |  Includes: CCJ, ES-OLD, URZ
by: HiddenLevers

Almost a year ago to the day, President Obama vowed to bring back nuclear energy in the US. Sure, it sounds like a great idea- it burns cleaner than fossil fuels, would promote domestic job growth, and would surely decrease our dependence on oil from the Middle East. But since then, what have we seen? Zip. Zilch. Nada. We seem to have leaped clear over nuclear energy in pursuit of harnessing greater wind and solar energy, but nuclear energy manages to thrive despite its detractors.

Even though the U.S. seems to be over the idea of a ‘nuclear renaissance,’ other countries, particularly those in Asia, are moving ahead with the construction of nuclear reactors. Nuclear energy, while still important in the here, seems to have much bigger growth prospects overseas, which looks to be the saving grace of this energy commodity. Companies directly and indirectly associated with Uranium prices have had mixed results, which is why it’s so important to understand the macro-economic factors behind making a sound portfolio investment decision. Let’s look at EnergySolutions, Inc. (NYSE:ES-OLD). Let’s just say it has some work to do:


Chart created using Hidden Levers app

Meanwhile, Cameco Mines (NYSE:CCJ) and Uranerz Energy (NYSEMKT:URZ) are performing well, despite the latter taking a recent hit:

They trend very closely to Uranium, so as long as there is demand and the price of Uranium goes up, we are comfortable in our belief that these two companies will follow suit. Be on the right side of well-performing commodities- macroanalytics help you make good investment decisions!