Seven Uranium Stocks to Fuel Your Portfolio

Here are some facts about uranium:

1. It is about 70% more dense than lead.

2. It occurs naturally in low concentrations in most rocks and water.

3. It has the highest atomic weight of the naturally occurring elements.

4. It was discovered in 1789 and named after the planet Uranus.

5. Its radioactive properties were uncovered in 1896.

6. It was first used as a fuel in the nuclear power industry in 1934.

7. One kilogram of uranium-235 can theoretically produce about as much electricity as 1500 tons of coal.

The following companies are involved in the uranium industry in some way, however, for some of the larger companies, uranium is a small part of their business. All these companies trade either on the New York Stock Exchange, the American Stock Exchange or NASDAQ.

BHP Billiton (BHP) is an Australian company which mines and produces uranium, along with numerous other minerals and natural resources such as aluminium, base metals, diamonds, coal, iron ore, manganese, and petroleum. The stock has a P/E of 19, a PEG of 2.36, and a yield of 1.30%.

Cameco (CCJ) is a Canadian company that develops and produces uranium around the world. The stock has a P/E of 36, and a yield of 0.60%.

Denison Mines Corp. (DNN) is a Toronto, Ontario company that develops and produces uranium, oil and gas, diamonds, gold, copper, cobalt, lead, nitrate, silver, vanadium, phosphate, iodine, sulphate, and zinc. The stock has a P/E of 34.

Rio Tinto plc (RTP) is British-based company that mines and produces uranium, aluminum, copper, coal, diamonds, gold, borax, nickel, zinc, lead, silver, potash, alumina, gypsum, molybdenum, sulphuric acid, and titanium. The stock has a P/E of 22, a PEG of 0.65, and a yield of 1.30%.

Uranerz Energy Corp. (URZ) is a Vancouver, Canada-based company which explores for and develops uranium properties. It has leases, options, and claims in Wyoming, Saskatchewan, Canada, Mongolia and Texas. The stock has recently generated negative earnings. This is a very low cap stock and should therefore be considered very speculative.

US Energy Corp. (USEG) is a Wyoming-based company that explores for and develops uranium, molybdenum, gold, lead, zinc, silver, and oil and gas. The stock has a P/E of 1.05. This is a very low cap stock and should therefore be considered very speculative.

USEC Inc. (USU) is a Maryland-based company that supplies low enriched uranium for commercial nuclear power plants. The stock has a P/E of 11, and a PEG of 1.0.

If you think that the future of the uranium industry looks grim, then maybe you should check out some green stocks, such as solar energy stocks and wind power stocks.

Disclosure: The author does not own any of the above.

Comments

[Muggins]

I agree with you on Denison Mines, but Cameco is going through a lot of bad luck lately. They never seem to come out with good news regarding future uranium supplies (Cigar Lake flooding). Their earnings were good but now the latest news was that they have identified more toxic waste in drill samples collected around the Port Hope site. They suspect that it is quite possible that the contamination may be reaching the lake. The costs for that cleanup could be enormous.

[eps]

Check out the cash per share and net cash (cash minus liabilities) on USEG.

[buyforeclosures]

USEC looks real cheap? P/E and Peg attractive

[DaveinHackensack]

Are you sure USEG is still a uranium company? I think it might have sold off all of its uranium properties last year.

[Uguy]

U.S. Energy sold all of its uranium assets. Do your homework!

[the omega]

psychologyofthecall.bl.../ recommended Uranium too ~

[fireball]

bhp seems the safest to me. if uranium goes up they benifit. if it goes down (which i doubt) they blink. silex seems a much better enrichment play than usu. it seems they are making usu obsolete.

[savvy_trader]

Look at the deposit grades (%U3O8). Cameco has the grade to support their costs. At current market prices, who else does? These companies need to be disclosing what their production costs are before I would invest a single dime.