Stirrings in the uranium sector
David Fuller's view There are three good reasons to remain cautious of the nuclear power industry and uranium miners - Fukushima, plus the understandable excitement over shale gas and shale oil. Nevertheless, JP Morgan mentions in their recent executive report that: "…in aggregate, nuclear power forecasts for 2020 have only dropped 5%."
The uranium price is quietly rangebound but at least it has held above its trough in 2009-2010. Uranium mining shares collapsed following Fukushima, the occasional takeover candidate excepted but have steadied recently. Canadian uranium miners Cameco (weekly & daily), Denison Mines (weekly & daily), Uranium One (weekly & daily) and UEX (weekly & daily) have all firmed in the region of their 2008-2009 bases and seen some upward dynamics recently.
Only time will tell if this is more than a short covering rally at this time. However, the world will need all the energy it can produce and nuclear can make a useful contribution to global supplies. Yes, it remains controversial but so do most other forms of energy, for one reason or another.
Trade report - Broker report
In the full disclosure department, both Cameco and Denison Mines are in my personal long-term investment portfolio. I am content to hold at this time but will not be adding to these positions because the sector remains highly speculative