13 Apr Nuclear Energy Opportunities
Nuclear Energy is a sensitive topic these days especially considering what happened at Japan’s nuclear plants after the March 2011 earthquake. Japan’s nuclear disaster raised a lot of concerns about the contamination of the global food supply from radioactive water or livestock consuming contaminated grasses or feed. Also, there were concerns of radioactive air and seawater spreading across Asia and possibly to North America. Large amounts of radiation exposed to humans can cause cancer, radiation sickness and genetic mutation. However, there are a lot of positives about nuclear energy that we overlook in times of crisis. Nuclear energy produces very little pollution compared to coal, gas and oil, which are responsible for half of the world’s air pollution. As well, nuclear power requires very little fuel to power it so it is less vulnerable to shortages. Also, I’m told that nuclear power is one of the safest methods of producing energy due to the strict safety mechanisms in place to avoid nuclear reactor accidents. The incident in Japan was a rarity. Therefore, nuclear energy could be here to stay in the long run. So what’s my point here and a capitalist would ask, how do we make money?
Well… uranium which is a key source of nuclear energy has seen demand evaporate after the Japan crisis. We have seen uranium prices drop like a rock and the stock prices of uranium producing companies decline sharply. If you believe in the long term viability of nuclear energy then you might want to invest in some uranium producing companies. Cameco, the world’s largest producer of uranium has seen its stock price drop since the beginning of this year and it could be an opportunity for an astute investor. Also, if you believe the price of uranium will go back up then you can look at the company, Uranium Participation Corp which owns physical uranium. As an investor, sometimes the best time to buy is when nobody wants to buy.
Disclaimer: I do not currently own any shares in the companies mentioned in this article.