Uranium stocks showed some signs of life with a bounce back in December 2008 despite the spot price remaining at $53/lb. A quick look at the list below indicates the percentage gains achieved by some of the household names in this market sector.
- Denison: $0.60–$1.18, 96% gain
- Laramide: $0.55–$0.98, 78.18% gain
- Mega: $0.42–$0.77, 83.33% gain
- Aurora: $0.90–$1.80, 100% gain
- Khan: $0.175–$0.43, 145% gain
- Crosshair: $0.09–$0.19, 111.11% gain
Even with these gains many uranium stocks are still way down from their highs but it is encouraging to see them head north in this manner. This could be a blip created by bargain hunters who with some trepidation are putting a toe outside of their nuclear bunkers to test the water.
Then there is the possibility of a honeymoon period for President Obama whereby the stock markets are lifted in the hope that the change in leadership will be a positive one. Also in the news is the plight of those living in the Ukraine where Russia has just cut off the gas supply. The wider implications for Europeans depending on Russian gas supplies must be a cause for concern. However, new nuclear power plants will not be built overnight but this threat of supply cuts should raise the question of more independence in the area of power generation and put the spot light back on nuclear energy.