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Uranium shares are due for a lift, says BMO's Ed Sterck, helped by consolidation in the...

Uranium shares are due for a lift, says BMO's Ed Sterck, helped by consolidation in the short-term and a looming supply gap as Japan restarts reactors and China begins issuing new reactor licenses. Forgetting uranium's price, the "derisked" outlook for nuclear energy could gain the investment community's attention and increase multiples for producers. URA -42% Y/Y.
Comments (2)
  • sinclaid
    , contributor
    Comments (12) | Send Message
     
    This may be all well and true but in a market such as we have now, all commodity based stocks are fraught with danger as deleveraging, should it come into full force as it did in the last credit crisis, will cause all of these companies to suffer in the short term. Forget all the fundamentals at present and concentrate on the bigger picture...it is the key driver until the winds subside in Europe [could well be a while].
    12 Jun 2012, 08:43 AM Reply Like
  • tonyconnolly
    , contributor
    Comments (120) | Send Message
     
    European crisis or not, the world still need electricity and with URA trading at 1/3rd of it's pre-Fukashima price, Japan turning back on it's demand and China and India expanding it's Nuclear reactor programs it's hard to see Uranium going down much from here. Also in 2013 the MegaTonnes for Megawatts project ends..this is the project that Russia and US have been supplying the world with much of it's uranium from...it's the conversion of stockpiled warheads into useable energy for nuclear industry....and this supply is close to played out....I don't like Nuclear energy for all the usual emotional reasons...but, it's proliferation is as inevitable as the the price rises yet to be seen in URA....demand for cheap electricity will out weigh all other issues...Until Colliders can sustain a fusion reaction (15-25yrs apparently)most of the world will be reliant on dirty old Uranium. Yes i'm long of URA at 6.9$....got to invest with your head not your heart,tc
    13 Jun 2012, 01:45 AM Reply Like
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