Infrastructure
Nuclear Stocks Reacting to USEC Woes (USU, CCJ, NLR, URZ, DNN, URRE, PESI)
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We have already covered the nuclear winter blow-up over at USEC Inc. (NYSE: USU) after the DOE declines to issue a guarantee for it long-pending loan application. What we wanted to see is what the fallout is in the rest of the nuclear sector. As we expected, all of the stocks are down. The good news is that these are not down anywhere as much we would have guessed based upon the sharp negative reaction for USEC shares. This has Cameco Corp. (NYSE: CCJ), Market Vectors Nuclear Energy ETF (NYSE: NLR), and others on the defensive.
Cameco Corp. (NYSE: CCJ) is the largest miner and explorer of uranium in North America and is based in Canada, although it is at least somewhat diversified. The Uranium segment involves in the exploration for mining, milling, and purchase and sale of uranium. Its stock is down more than 2% at $26.80, and its 52-week range is $11.78 to $36.97.
Market Vectors Nuclear Energy ETF (NYSE: NLR) is the ETF that tracks the nuclear energy field. However, it is very global and tracks the DAXglobal Nuclear Energy Index. It normally invests at least 80% of total assets in equities of U.S. and foreign companies which derive at least 50% of their total revenues from nuclear energy business. This ETF is down 3.5% at $22.64 and its 52-week trading range is $13.75 to $31.06.
Uranerz Energy Corp. (NYSE/AMEX: URZ) is the speculative exploration stage company for uranium resources. Shares are down 4.4% at $1.93 in light volume trading of 63,000 shares (avg. volume is 350,000 or so). Uranerz has a 52-week trading range of $0.40 to $2.67. Denison Mines Corp. (NYSE/AMEX: DNN) made an investment Uranerz Energy Corp and its stock is down 4% at $1.73 on 380,000 shares, and its 52-week range is $0.54 to $6.95.
Uranium Resources, Inc. (NASDAQ: URRE) is another micro-cap company that engages in the acquisition, exploration, development, and production of uranium. Its shares are down 6% at $1.05 on about 600,000 shares (vs. 1.15 million avg. volume). Its 52-week range is $0.36 to $3.69.
Perma-Fix Environmental Services Inc. (NASDAQ: PESI) is a remediation company under a DOE contract for nuclear clean-up. Its shares are down 2.6% at $2.60 on almost 200,000 shares (vs. almost 300,000 avg. volume). Perma-Fix has a 52-week trading range of $0.63 to $2.74.
Think of the good news. If you are investing based upon the notion that the U.S. is going to have to keep being dependent upon foreign energy, this denial just helped to keep that scenario as more likely rather than less likely.
JON C. OGG
JULY 28, 2009
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