World's Hottest Uranium Stocks

Source:

The global uranium rush has triggered an explosion in exploration, along with entrepreneurs dusting off dormant projects, and rushing to the market.

Prices for uranium (uranium oxide, U3O8, to be exact) have soared in the past few years as record crude oil prices have forced public and private sectors to announce rafts of nuclear reactors as a cost-effective energy alternative. Long-established uranium producers have benefited enormously; the market capitalization of the No 1 producer, Cameco, is close to US$14bn.

Uranium prices have grown ten fold in just five years. Between the early 1990s and 2004, uranium markets were in a supply/demand deficit, balanced by inventories held by nuclear generators and traders. Prices started turning in 2001, from between $5 and $10/pound, to current quotes around the $80/pound mark. Over the past five years, Cameco's NYSE stock price has increased from less than $3 a share to more that $45, with current quotes around $40.25.

The global uranium rush has triggered an explosion in exploration, along with entrepreneurs dusting off dormant projects, and rushing to the market. This raises serious questions of potential risk for equity investors, confronted by a plethora of choices.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe