Cameco (CCJ) Falters, Uranium COs Trade Mixed

Companies and ETFs with exposure to uranium and nuclear are trading mixed after the poor first quarter results reported by Cameco Corp. (NYSE:CCJ).

Fortunately it was a miss related more to the company than it was to the sector, otherwise share prices would have plummeted across the board because of the continuing uncertainty in the nuclear industry related to the consequences of the earthquake in Japan.

Uranium production volume fell to 4.7 million pounds, a plunge of 23 percent. Most of that was attributed to a drop in production at McArthur River/Key Lake.

Sales volume dropped 8 percent, resulting in a 2 percent fall in revenue from uranium for Cameco.

Cameco also guided lower for the remainder of 2011.

Nuclear ETF iShares S&P Global Nuclear Energy Index (Nasdaq:NUCL) was trading at $42.00, gaining $0.35, or 0.84 percent, after trading down most of the day. Market Vectors Nuclear Energy Energy (NYSEArca:NLR) was trading at $22.64, up $0.20, or 0.89 percent.

Denison (NYSE:DNN) was trading at $2.17, down $0.01, or -0.46 percent. Cameco Corporation was at $28.31, falling $0.27, or 0.94 percent. USEC Inc. (NYSE:USU) was at $4.30, declining $0.01, or 0.23 percent. Uranium One (TSE:UUU) was trading in Toronto at $4.17, falling $0.06, or 1.42 percent. Uranium Resources, Inc. (NASDAQ:URRE) was trading at $1.65, up $0.03, or 1.85 percent. Uranium Energy (AMEX:UEC) climbed to $3.25, rising $0.05, or 1.56 percent. Ur-Energy Inc. (AMEX:URG) was at $1.51, gaining $0.02, or 1.34 percent. Uranerz Energy Corporation (AMEX:URZ) was trading at $2.725, up 0.085, or 3.22 percent

Almost every uranium company started to rebound at about 2:30 PM EDT.

Uranium Energy (UEC) (URRE) (UUU) (SHAW) Ready to Rock on Nuclear Demand?

One element involved in the nuclear and uranium industry is some companies are exposed to several sectors and/or segments of energy, so they must be considered in that light accordingly, but with nuclear sure to be begin to rebound, as it appears it already is, companies like Uranium Resources, Inc. (NASDAQ:URRE), Uranium Energy (AMEX:UEC), Uranium One (TSE:UUU) and Shaw Group Inc. (NYSE:SHAW) should benefit from the move.

A couple of bits of news gave the uranium and nuclear sector a boost Tuesday. One was the announcement by Uranerz Energy (URZ) that the company has increased its uranium resource base at Power River Basin by 45 percent to 19.1 million pounds. The company also said in its note to shareholders that it now holds $47 million in cash. That gave the company a 10 percent boost in its share price, and will have a short-term positive effect on the sector.

More important, and something that gives a look at the near-term outlook for the uranium and nuclear industry, is the new that Russian and Chinese state-owned nuclear companies have made bids for Australian uranium assets, underscoring the reality nuclear remains extremely important to the countries, and their plans to expand in that energy area will continue for years.

The difference now and after the nuclear problems in Japan is the companies are asking for a reduction in their bids. Rosatom bid for ASX-listed Tanzanian uranium developer Mantra Resources (ASX:MRU), where they asked for a reduction of 12 percent of the former bid.

China's CGNPC told Kalahari Minerals they want to cut 7 percent off its takeover bid.

So it appears the tragedy in Japan hasn't done much to stop nuclear demand, but rather has lowered the premium prices that had existed before the earthquake.

With uranium demand unlikely to fall any time soon, it's uncertain whether the lower acquisition bids will put downward pressure on margins and earnings of companies if that extends to uranium prices as well.

The bottom line is nuclear and uranium are not going anywhere, and China and Russia appear to be making a move to lock up long-term sources at prices 7 to 12 percent lower than before the nuclear crisis in Japan.

How that will affect the overall industry has yet to unfold, but it has definitely changed the game. What hasn't changed is the demand for uranium and nuclear power.

Denison (DNN) (USU) (URRE) (:CXZ) and (URZ) Rebounding After Initial Shock

Shares of uranium and nuclear companies such as Denison Mines Corp (AMEX:DNN), USEC Inc. (NYSE:USU), Uranium Resources, Inc. (NASDAQ:URRE), Crosshair Expl & Mining (AMEX:CXZ) and Uranerz Energy Corporation (AMEX:URZ) are starting to slowly gain traction again after the initial shock of the nuclear disaster in Japan from the earthquake is starting to slowly wind down.

The extreme news headlines suggesting that the nuclear sector is going to be abandoned and replaced by other so-called "green" energy is ludicrous of course, as solar and wind turbines are a poor and unpredictable sources of energy, and will never be able to supply, or come close to supplying, the growing energy needs of the world.

While it's predictable the nuclear industry will go over safety measures to ensure the highest safety levels possible, the idea of taking an extremely rare occurence like an 8.9 earthquake as the worst case scenario isn't going to happen, even though the industry will be safer and better for making any improvements they can.

This is a time to look at low valuations and buy up targeted nuclear and uranium companies, as they will undoubtedly rebound and make shareholders and investors a lot of money.

Denison closed Friday at $2.34, up $0.04, or 1.74 percent. iShares S&P Global Nuclear Energy Index (Nasdaq:NUCL) closed at $42.14, falling $0.09, or 0.21 percent. Market Vectors Nuclear Energy E (NYSEArca:NLR) ended the session at $23.49, gaining $0.11, or 0.47 percent.

Cameco (CCJ) (UEC) (TSE:PDN) (EXC) Rebounding After Initial Shock

Shares of uranium and nuclear companies like Uranium Energy (AMEX:UEC), Paladin (TSE:PDN), Cameco Corporation (NYSE:CCJ) and Exelon (NYSE:EXC) are starting to slowly gain traction again after the initial shock of the nuclear disaster in Japan from the earthquake is starting to slowly wind down.

The extreme news headlines suggesting that the nuclear sector is going to be abandoned and replaced by other so-called "green" energy is ludicrous of course, as solar and wind turbines are a poor and unpredictable sources of energy, and will never be able to supply, or come close to supplying, the growing energy needs of the world.

While it's predictable the nuclear industry will go over safety measures to ensure the highest safety levels possible, the idea of taking an extremely rare occurence like an 8.9 earthquake as the worst case scenario isn't going to happen, even though the industry will be safer and better for making any improvements they can.

This is a time to look at low valuations and buy up targeted nuclear and uranium companies, as they will undoubtedly rebound and make shareholders and investors a lot of money.

Cameco closed Friday at $29.48, up $0.04, or 0.14 percent.

Uranium One (UUU) (NLR) (UEC) (SO) Closed Mixed in Monday Trading

Shares of uranium and nuclear companies like Market Vectors Nuclear Energy (NYSEArca:NLR), Uranium Energy (AMEX:UEC), Uranium One (TSE:UUU) and Southern Company (NYSE:SO) closed down Monday, April 25th, as the initial shock of the nuclear challenges in Japan from the earthquake start to gradually wind down.

The headline that the nuclear sector is going to be abandoned and replaced by other so-called "green" energy is of course ludicrous, as solar and wind turbines are a poor and unpredictable source of energy, and will never be able to supply, or come close to supplying, the growing energy needs of the world.

While it's obvious the nuclear industry will go over safety measures to ensure the highest safety levels possible, the idea of taking an extremely rare occurrence like an 8.9 earthquake in Japan as the worst case scenario to determine nuclear strategies isn't going to happen, even though the industry will be safer and better for making any improvements they can.

Uranium suppliers, either way, will continue to enjoy growth going forward, regardless of the response to the industry in the aftermath of Japan, as existing nuclear plants will continue to operate for years into the future, and will need uranium to power them.

Who could be hurt more, depending on if they have any courage to continue on in the sector or not, are General Electric (NYSE:GE) and Siemens (NYSE:SI).

Denison (DNN) (USU) (NUCL) (PDN) (UEC) Trade Up as Nuclear Looks for Clarity

Shares of uranium and nuclear companies like Denison Mines Corp (AMEX:DNN), USEC Inc. (NYSE:USU), iShares S&P Global Nuclear Energy Index (Nasdaq:NUCL), Paladin (TSE:PDN) and Uranium Energy (AMEX:UEC) are trading up after the initial shock of the nuclear challenges in Japan from the earthquake have started to slowly wind down.

The headline silliness that the nuclear sector is going to be abandoned and replaced by other so-called "green" energy is ludicrous, as solar and wind turbines are a poor and unpredictable source of energy, and will never be able to supply, or come close to supplying, the growing energy needs of the world.

While it's obvious the industry will go over safety measures to ensure the highest safety levels possible, the idea of taking an extremely rare occurrence like an 8.9 earthquake as the worst case scenario isn't going to happen, even though the industry will be safer and better for making any improvements they can.

Uranium Energy closed Thursday at $3.85, gaining $0.06, or 1.58 percent. iShares S&P Global Nuclear Energy Index closed at $41.45, up $0.40, or 0.97 percent. USEC Inc. ended the day at $4.46, level with Wednesday's close. Denison Mines Corp. closed at $2.40, jumping $0.03, or 1.27 percent. Paladin Energy closed in Toronto at $3.73, up $0.01, or 0.27 percent.

Crosshair (CXZ) (UEC) (URG) (URRE) Trade Mixed as Nuclear Settles Down

Shares of uranium and nuclear companies Uranium Energy (AMEX:UEC), Ur-Energy Inc. (AMEX:URG), Crosshair Expl & Mining (AMEX:CXZ) and Uranium Resources, Inc.(URRE) are trading mixed after the early shock of the nuclear disaster in Japan from the earthquake are gradually winding down.

The headlines that imply that somehow the nuclear sector was going to be cut and replaced by other so-called "green" energy is nonsense, as solar and wind turbines are a poor and unpredictable source of energy, and will never be able to supply, or come close to supplying the growing energy needs of the world.

While it's a no brainer the industry will go over safety measures to ensure the highest safety levels possible, to use a rare occurence like an 8.9 earthquake as the worst case scenario isn't going to happen in the nuclear industry, even though the sector will be safer and better for making any improvements they are able to.

Uranium Resources, Inc. closed Tuesday at $1.95, level with Monday's close. Crosshair Expl & Mining closed at $0.97, dropping $0.036, or 3.56 percent. Uranium Energy ended the trading day at $3.78, down $0.17, or 4.30 percent. Ur-Energy Inc. closed at $1.58, down $0.05, or 3.07 percent.

Cameco (CCJ) (UEC) (SHAW) (DNN) Close Up as Nuclear Rebounds

Shares of uranium and nuclear companies like Shaw Group Inc. (NYSE:SHAW), Uranium Energy (AMEX:UEC), Denison Mines Corp (AMEX:DNN) and Cameco Corporation (NYSE:CCJ) are rebounding after the initial shock of the nuclear challenges in Japan from the earthquake are gradually winding down.

The headline nonsense that somehow the nuclear sector was going to be cut and replaced by other so-called "green" energy is ludicrous, as solar and wind turbines are a poor and unpredictable source of energy, and will never be able to supply, or come close to supplying the growing energy needs of the world.

While it's obvious the industry will go over safety measures to ensure the highest levels possible, to use a rare occurrence like an 8.9 earthquake as the worst case scenario isn't going to happen, even though the industry will be safer and better for making any improvements they can.

Cameco Corporation closed Friday at $28.46, gaining $0.42, or 1.50 percent. Denison Mines closed at $2.38, rising $0.02, or 0.85 percent. Uranium Energy closed at $4.09, up $0.06, or 1.49 percent. Shaw Group closed at $37.75, increasing $0.41, or 1.10 percent.

China Temporarily Suspends Nuclear Plant Approvals

Confirming what they've already said, China said it will continue to build its nuclear reactors and maintian their nuclear energy strategy, although they have stopped approval of nuclear plants in order to go over safety standards to see if anything needs to be changed.

Some media outlets have made this look as if there is some doubt as to using nuclear energy in China, but that's not the case at all; it's just a temporary precaution to make sure the proper safety measures in place before proceeding.

In a statement made by the Chinese state council, they also said it "has required relevant departments to do safety checks at existing plants."

"Before the revised safety standards are approved, all new nuclear power plants, including pre-construction works, should be suspended," according to the statement.

The report concluded that China isn't affected by radioactive leakage from the Japanese plant.

As expected, the nuclear, and by extension, uranium industry, could be under short-term pressure, but that won't last long once the safety process is completed.

With the nuclear goals still in place, it's unclear whether that will have too much of a detrimental impact on uranium companies, as an expected supply problem has been anticipated for some time, and China and others vying for uranium may continue to stock up.

Some uranium companies are Cameco (NYSE:CCJ), Crosshair (AMEX:CXZ), Denison (AMEX:DNN), Uranium Energy (AMEX:UEC), UR Energy (AMEX:URG), Uranium Resources (NASDAQ:URRE) and Uranerz Energy (AMEX:URZ).

Denison (DNN), Paladin (PALAF), Uranium Energy (UEC), Uranium Resources (URRE), Ur-Energy (URG), USEC (USU) Down on Uranium Demand Uncertainty

Uranium demand fears pushed down stocks like Denison Mines Corp. (AMEX:DNN), Paladin Energy Ltd. (OTC:PALAF), Uranium Energy Corp. (AMEX:UEC), Uranium Resources (NASDAQ:URRE), Ur-Energy Inc. (AMEX:URG) and USEC Inc. (NYSE:USU), as expectations there could be a period of slowing growth hitting the industry as the Japan nuclear scenario plays itself out.

This will happen more in the West than it will in countries like China, which has already said the earthquake in Japan won't have any effect on their plans for a nuclear energy future.

Denison closed Tuesday at $2.37, dropping $0.18, or 7.06 percent. Uranium Energy fell to $3.74, losing $0.18, or 4.59 percent. Uranium Resources Inc. closed the session at $1.58, lower by $0.17, or 9.71 percent. Ur-Energy Inc. fell by $0.23, to end the day at $1.59, down 12.64 percent. Paladin was down to $3.45, losing $0.3379, or 8.92 percent. USEC closed out at $4.36, down $0.23, or 5.01 percent.

Cameco (CCJ) CEO Says Nuclear Renaissance Will Continue

While acknowledging there could be a temporary slowdown in the nuclear industry because of Japan nuclear struggles, Cameco (NYSE:CCJ) Chief Executive Officer Jerry Grandey doesn't see it having a negative impact on the long term.

Grandey says he firmly believes the nuclear renaissance will survive the unfolding Japanese nuclear disaster, as the 60-plus power plants now under construction around the globe continue to forge ahead.

During a conference call with analysts, investors and news media Monday, Grandey said two Japanese utilities are directly affected. However, even if they were to temporarily deter part of their deliveries, Cameco would still be well within its guidance for their year, he emphasized.

Of the 54 nuclear power stations in Japan, 11 are now down due to the earthquake and the tsunami, Grandey said. Nevertheless, he explained, "Even if the 11 units remain down, it would not be all that significant to Cameco."

And, Grandey stressed, Cameco will not shift its uranium portfolio as a consequence of the events in Japan. Nor does he anticipate that the Saskatchewan-based uranium miner will have to sell back into the spot market.

No long-term contracts have been canceled at this point, Grandey noted.




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Cameco (CCJ), Denison Mines (DNN), Crosshair (AMEX:CXZ), Uranium Energy (UEC) Punished on Nuclear Uncertainty

From an investing standpoint, the drop in share prices of nuclear-exposed stocks like Cameco (CCJ), Denison Mines (AMEX:DNN), Crosshair Expl & Mining (AMEX:CXZ) and Uranium Energy (AMEX:UEC) must be considered a buying opportunity, as the fundamentals in the industry won't be changing at all, even with the usual political performance of "looking into" the industry.

The idea of solar and wind turbines as legitimate energy sources are laughable, and the endless support of so-called clean energy is represented by nuclear itself, which brings the list of alternatives down to a very few possibilities.

That also doesn't include the fact that there isn't enough energy to face the near future, and nuclear will have to be built and expanded to meet it.

So in spite of the inevitable calls for slowing down the industry, etc., after some looks into improving the sector, we'll return the ongoing nuclear expansion, as the newer reactors are even safer than the old ones, and they are the best answer over the next several decades while other alternatives are being explored.

For those with a little patience, most of those in the sector which are healthy companies will rebound back, and investment now will pay off in a relatively short time, once the situation in Japan is understood better and the news is digested.

Cameco closed Monday at $32.62, down $4.76, or 12.73 percent. Denison closed at $2.55, down $0.74, or 22.49. Crosshair closed the day at $1.27, falling $0.40, or 23.95 percent. Uranium Energy closed at $3.92, falling $0.93, or 19.18 percent.

Uranium Producers (CCJ) (DNN) (USU) (URG) (URRE) Getting Crushed Today

Shares of uranium producers and suppliers are getting crushed today on concerns over the potential consequences which could come as a result of the damage at nuclear power plants in Japan.

Companies like Cameco Corporation (NYSE:CCJ), Denison Mines Corp (AMEX:DNN), USEC Inc. (NYSE:USU), URG (AMEX:URG), Uranium Resources Inc. (URRE), Crosshair Expl & Mining (AMEX:CXZ) and Uranium Energy (AMEX: UEC).

Shaw Group Inc. (NYSE:SHAW), Market Vectors Nuclear Energy E (NYSEArca:NLR) and iShares S&P Global Nuclear Energy Index (Nasdaq:NUCL) were also getting hammered.

"The triple issue of the earthquake, tsunami and now the nuclear plant is enough to make anyone afraid," said James Dailey, portfolio manager of the Team Asset Strategy Fund. "Anytime you get this type of human tragedy, it shakes people up."

Cameco was trading at $31.61, down $5.77, or 15.44 percent, as of 12:46 PM EDT. Denison Mines was at $2.48, down $0.81, or 24.62 percent. USEC was at $4.48, down $0.68, or 13.18 percent. Ur Energy collapsed to $1.84, falling $0.67, or 26.69 percent. Uranium Resources plunged to $1.70, declining $0.6250, or 26.88 percent. Crosshair plummeted to $1.22, down $0.45, or 26.95 percent. Uranium Energy dropped to $3.62, down $1.23, or 25.46 percent.

Shaw plunged to $31.16, down $7.25, or 18.88 percent. Market Vectors Nuclear Energy fell to $21.98, down $3.53, or 13.84 percent. iShares S&P Global Nuclear Energy Index dropped to $39.27, down $5.43, or 12.15 percent.