Here is another article that is supporting the come back of the uranium sector. Its starting to heat up again!
Tuesday, January 17, 2012
By Darcy Keith
The uranium sector is showing some signs of powering back to life after
largely being stuck in the doldrums for months in the aftermath of the nuclear
crisis last year in Japan.
The Global X Uranium ETF , which holds more than 20 global uranium stocks including several Canadian names such as Cameco , Uranium One and Denison Mines , is up nearly 10 per cent today. Its competitor, the Market Vector Uranium and Nuclear Energy ETF , is up more than 5 per cent.
Some of the gains can be attributed to a 15 per cent rally in Uranium One Inc. shares Monday as the company reported 2011 production that beat guidance and announced the purchase of a 13.9 per cent stake in Mantra Resources. That bolstered sentiment across the sector Monday, but with the U.S. market having been closed, U.S.-listed ETFs are seeing the lift today.
Some analysts also note comments from China’s prime minister, Wen Jiabao, this week at the World Future Energy Summit in Abu Dhabi that further highlighted the country’s intention to go strong on renewables and nuclear power as it tries to limit the use of coal.
“Uranium names are hot right now and appear back in favour after UUU news and comments by the Chinese Prime Minister backing uranium,” said Rob Chang, analyst with Versant partners.
That outlook is further buoyed by the fact that some uranium projects were postponed or cancelled because of difficulties in getting financing after Fukushima, limiting future supplies.
Still, many analysts note it could be a lengthy wait for uranium stocks to get fully re-energized after the Fukushima incident last March ignited worries about the possible demise of nuclear power.
“The uranium market has near-term uncertainty given the potential for excess inventories to be put onto the market from Germany and Japan as well as the extent to which existing orders may be cancelled or deferred,” cautioned UBS analyst Brian MacArthur in a research note. “Over the long-term, future growth is still expected to come from China, India, South Korea, Russia and Saudi, as all have recently reconfirmed their commitment to nuclear.”
Canaccord Genuity in a note today echoed that sentiment: “We advise caution as a similar rally off the index lows occurred in October 2011 only for November to see the majority of those gains given back. However, we remain confident of the sector’s future given the existing build out plans in China, the lack of alternatives in many states and growing signs of tension in the Middle Eastern oil markets.”
Source: https://streaming.tdwaterhouse.ca/fctdwbclient8/w3frameset.htm
You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses
The Global X Uranium ETF , which holds more than 20 global uranium stocks including several Canadian names such as Cameco , Uranium One and Denison Mines , is up nearly 10 per cent today. Its competitor, the Market Vector Uranium and Nuclear Energy ETF , is up more than 5 per cent.
Some of the gains can be attributed to a 15 per cent rally in Uranium One Inc. shares Monday as the company reported 2011 production that beat guidance and announced the purchase of a 13.9 per cent stake in Mantra Resources. That bolstered sentiment across the sector Monday, but with the U.S. market having been closed, U.S.-listed ETFs are seeing the lift today.
Some analysts also note comments from China’s prime minister, Wen Jiabao, this week at the World Future Energy Summit in Abu Dhabi that further highlighted the country’s intention to go strong on renewables and nuclear power as it tries to limit the use of coal.
“Uranium names are hot right now and appear back in favour after UUU news and comments by the Chinese Prime Minister backing uranium,” said Rob Chang, analyst with Versant partners.
That outlook is further buoyed by the fact that some uranium projects were postponed or cancelled because of difficulties in getting financing after Fukushima, limiting future supplies.
Still, many analysts note it could be a lengthy wait for uranium stocks to get fully re-energized after the Fukushima incident last March ignited worries about the possible demise of nuclear power.
“The uranium market has near-term uncertainty given the potential for excess inventories to be put onto the market from Germany and Japan as well as the extent to which existing orders may be cancelled or deferred,” cautioned UBS analyst Brian MacArthur in a research note. “Over the long-term, future growth is still expected to come from China, India, South Korea, Russia and Saudi, as all have recently reconfirmed their commitment to nuclear.”
Canaccord Genuity in a note today echoed that sentiment: “We advise caution as a similar rally off the index lows occurred in October 2011 only for November to see the majority of those gains given back. However, we remain confident of the sector’s future given the existing build out plans in China, the lack of alternatives in many states and growing signs of tension in the Middle Eastern oil markets.”
Source: https://streaming.tdwaterhouse.ca/fctdwbclient8/w3frameset.htm
You are reminded that you are responsible for your own due diligence. We share in neither your profit nor your losses
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