Nuclear Power's Second Coming Will Lead to Uranium Boom

Source:

...The best way to play the future nuclear boom is to look to the most integral suppliers for the production of nuclear power: the uranium producers. The uranium producers' stocks right now have bargain basement prices and they stand to profit immensely in the coming years as nuclear production begins to ramp up...

...Despite the recent advancements in clean coal technology, coal fired power plants are still targeted as public enemy number one by the environmental movement. The United States, however, is still very much dependent upon coal as its primary supplier of electricity and no other environmentally friendly sources have proven that they are capable of supplying even close to as much energy as coal at a price that is cost feasible. But there is perhaps an exception that is becoming more cost feasible. That is nuclear power.

American politicians seemed to have turned their attention to nuclear power to help produce emission free electricity. Presidential candidate John McCain recently stated that he would like to see 45 new nuclear facilities built by the year 2030 and pledged 2 billion taxpayer dollars a year to help make that a reality. It is very likely that a proposal such as this will come to fruition no matter which party is elected and having funds like this available make nuclear power a cost feasible method of producing emission free electricity.

...The best way to play the future nuclear boom is to look to the most integral suppliers for the production of nuclear power: the uranium producers. The uranium producers' stocks right now have bargain basement prices and they stand to profit immensely in the coming years as nuclear production begins to ramp up.

The recent decline in prices of uranium has hammered the stock prices of uranium producers such as Uranium Resources Inc. (URRE) and Denison Mines Corporation (DNN). There are many factors to blame for the recent decline in prices and the first is that the 2006-2007 run-up in uranium prices was caused by a worldwide surge in demand and also by speculators frantically buying uranium in anticipation of a surge in nuclear capacity, only to sell when they realized that the surge was still years off. Though the surge is still a few years away, the decline in uranium prices has created the perfect opportunity for the long term investor to swoop in and pick up some shares in these uranium producers at extremely low prices.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe