Monday, April 25, 2011

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.

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