One Nuclear Stock Shines Bright!

青影

There’s no question uranium miners will benefit from a price resurgence in the commodity they produce.  But keep in mind, navigating the uranium mining industry can be a bit tricky these days.

After all, there are a number of small-cap US miners with substantial debt and little to no revenue.

Instead of diving into this risky arena, consider this company…

Cameco Corporation $CCJ is a mid-cap producer accounting for 16% of global uranium production from its US, Canadian, and Kazakhstan operations.

And that’s not all…

The company is also a leader in the uranium refining industry.  As you may know, uranium ore must go through a complex process before it can be used as a nuclear fuel.

As far as the company’s financials go, they have some of the best in the industry. Not only is Cameco solidly profitable, but it has ample liquidity and low debt- three factors hard to come by at once in the uranium mining/refining industry.

But perhaps the best part about Cameco is this chart…



As you can see from this long-term chart, shares are trading within a stone’s throw of the 2009 lows at $12.50.

It’s likely this huge technical support level keeps bears at bay going forward.

While it’s still possible we see a complete retest of the 2009 low, I would use it as a buying opportunity if it did.  This company simply has too much going for it for shares to drop much further than that.

And before I forget…

Cameco pays investors a respectable 1.8% dividend, which means you’ll be paid to wait for the inevitable resurgence in the global nuclear power industry!
Inevitable Nuclear Resurgence: Really?

According to the International Energy Agency (IEA), global nuclear generation capacity will rise 60% between now and 2040.

While 148 GW of nuclear capacity will be retired due to the shuttering of old plants, 380 GW of capacity will be added to help fuel society’s insatiable need for electricity.

Most of the growth will come from China…

The populous nation will add 132 GW of nuclear capacity, which will eventually eclipse the current installed capacity of the US and Russia- combined!

With nuclear energy demand set to explode in coming years, now’s the time for patient investors to take a close look at Cameco.

And remember…

If you’re still unconvinced of Cameco’s potential, there’s always the Market Vectors Uranium+Nuclear Energy $NLR.


The exchange traded fund (ETF) holds 53 companies involved in uranium mining and/or nuclear power generation.  Therefore you get instant diversification in an industry that’s virtually guaranteed to grow by leaps and bounds in coming years!

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