Mad Hedge Fund Trader's  Instablog

 If we are just on the verge of entering a long term bull market for nuclear energy, as I mentioned in my piece yesterday (http://www.madhedgefundtrader.com/June_15__2009.html), then you would have to expect the same for nuclear fuel producers. Last year, the US consumed 55 million pounds of “yellow cake” or uranium oxide, but produced only 4 million pounds. The rest came out of stockpiles or from imports, much if it from the reprocessed Russian nuclear warheads. The new Dept. of Energy under Dr. Stephen Chu has made a big priority of making loan guarantees available to expand nuclear capacity from a lowly 20% of our total grid. The price of uranium is also rising, dragged up by crude, and has bounced 25% from a low this year of $40/pound, to $50. You can take a look at Austin, TX based Uranium Energy Corporation (UEC), which could start production at its Golead mine next year.