Nuclear Stocks

Discussion in 'Stocks' started by qll, Jul 9, 2006.

  1. qll

    qll

    Anyone can point ONE or SOME good nuclear stocks?
    I am looking some pure nuclear plays, best if they have built anything in China, India, Japan, So. Korea.
     
  2. Nuclear plays? You want Uranium spot, Uranium mining, Uranium ventures, Uranium production?
     
  3. Like CCJ and the sort.

    Once you look at the charts you will see that you are quite late to the party. Nuclear power has a limited future anyway, too much risk and the cost is not low enough still. This one french company has made advancements in the techonology, with small size, low cost nuclear facilities but who the hell wants to live next to one of those.

    Nuclear power key advantage is capacity and capacity alone. It never was cheaper or even competitive on the cost.
     
  4. BHP (fourth largest uranium producer in the world), CCJ (Largest producer of uranium in the world 20% of all demand),URME.ob, URRE.ob, USU, ABB (builds nuclear plants), DEN.TO, STM.TO, IUC.TO, PDN.TO, JNN.V, UEX.TO, EMC.V, LAM.V, GDM.AX, ERA.AX (Australia Stock Exchange) and Aflease Gold and Uranium Resources (2019804.sg)

    list from:

    http://www.freebuck.com/articles/afield/050227afield.htm

    COMPARISONS AND CONCLUSIONS.

    The companies reviewed above are so different that it is impossible to find a formula for comparing them. There are exploration companies, companies that own older, known but uncertain deposits, companies that will be producing within a few years and also current producers. The fact that there are so few uranium mining/exploration companies probably ensures that they will all rise as the uranium price escalates. All one can do is examine some of the anomalies which suggest that a couple of stocks might be superior performers.

    For example, Goldstream Mining (GDM in Sydney) is a uranium explorer that has not been discovered by the uranium vigilantes. GDM has interesting prospects for uranium exploration both in Tanzania and the Northern Territory of Australia. I am told that the latter area has no Native Title problems, which is a big plus. With a small market capitalisation of US$43m, any good exploration news should add significantly to GDM’s market value. GDM seems to have limited downside potential and could warrant a small amount of gambling money.

    The companies that have purchased older, known deposits that have unreliable resource estimates, for example Strathmore (STM), Energy Metals (EMC) and Laramide (LAM), seem to be valued at US$1.00 per lb of uranium in the ground despite the lack of reliability of their resource estimates. Paladin (PDN in Sydney) which is approaching development of one project and has more reliable resource estimates, is being valued at $3.00 per lb in the ground. (PDN has a market capitalisation of $315m and 110m lbs of uranium resources).

    Aflease Gold and Uranium (AFLUY) will have well defined and confirmed resources in excess of 600m lbs assuming the Harmony acquisition is completed. With a market capitalisation of US$308m Aflease is being valued at a mere 50c per lb in the ground. The Aflease situation is analogous with that of Paladin, but the latter company is valued at $3.00 per lb in the ground. This analysis suggests that Aflease is undervalued relative to its peers.

    A comparison with UEX also suggests that AFLUY is undervalued. UEX has a market capitalisation of US$384m which is higher than the $308m that AFLUY is valued at. Yet UEX is still at the exploration stage while AFLUY has a reliable uranium resource of 600m lbs and should become a profitable producer within a couple of years.

    Energy Metals (EMC) with a market capitalisation of only US$60m looks the most attractive of those companies that have been acquiring older, known deposits. The latest EMC purchase of uranium properties in Wyoming looks especially interesting.

    Alf Field

    Also on ET:http://www.elitetrader.com/vb/showthread.php?s=&threadid=55926&perpage=6&pagenumber=2

    $COSTAverageMAN
     
  5. qll

    qll