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For Uranium, an Exit From the Doghouse?

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"Things may be looking up for the sector. Rising nuclear plant construction across emerging markets is improving the supply-demand situation. Perhaps more importantly, Japan’s sleeping reactors are starting to wake."

InvestorPlace, Aaron Levitt

The nuclear power industry took a huge hit last year when Japan suffered the double disaster of earthquake and tsunami. The tragic duo caused one of the worst nuclear catastrophes, and the resulting meltdown at TEPCO's Fukushima reactor sparked unprecedented changes in the nuclear sector worldwide.

Japan began phasing out the fuel source and in May, the nation shut down its last nuclear reactor. That marked the first time since the 1970s that the island nation had no nuclear power. Likewise, Germany has announced a complete phase-out of its nuclear plants by 2022. Other developed nations have been following suit.

Producing nuclear power became taboo, and many analysts and investors considered the sector 'dead money.' These phase-outs surely had a negative impact on both uranium prices and nuclear sector equities.

Now, though, things may be looking up for the sector. Rising nuclear plant construction across emerging markets and in Southeast Asia is adding a new dimension to the supply-demand situation. And perhaps more important in the near term, Japan's sleeping reactors are starting to wake.

For long-term investors, these events could point to a nuclear renaissance. . .View Full Article


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