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.

NRG (NYSE:NRG), Crosshair Expl & Mining (AMEX:CXZ), USEC Inc. (NYSE:USU) and Exelon (NYSE:EXC) 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 NRG (NYSE:NRG), Crosshair Expl & Mining (AMEX:CXZ), USEC Inc. (NYSE:USU) and Exelon (NYSE:EXC) 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.

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.

Denison Mines (DNN) (USU) (URRE) (URZ) (NUCL) Closed Mixed in Monday Trading

Shares of uranium and nuclear companies like Denison Mines Corp (AMEX:DNN), USEC Inc. (NYSE:USU), Uranium Resources, Inc. (NASDAQ:URRE), Uranerz Energy Corporation (AMEX:URZ) and iShares S&P Global Nuclear Energy Index (Nasdaq:NUCL) closed mixed 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.

Denison (DNN) (CCJ) (SO) (USU) Trade Mixed as Nuclear Settles Down

Shares of uranium and nuclear companies Southern Company (NYSE:SO), USEC Inc. (NYSE:USU), Denison Mines Corp (AMEX:DNN) and Cameco Corporation (NYSE:CCJ) 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 occurrence 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.

USEC closed Tuesday at $4.34, gaining $0.03, or 0.70 percent. Cameco Corporation closed at $28.43, jumping $0.31, or 1.10 percent. Denison Mines Corp. ended the trading day at $2.29, level with Monday's close. Southern Company closed at $38.19, down $0.09, or 0.24 percent.

USEC (USU) (URRE) (PDN) (SO) Trade Up as Nuclear Rebounds

Shares of uranium and nuclear companies like Paladin Energy (TSE:PDN), Uranium Resources, Inc. (NASDAQ:URRE), Southern Company (NYSE:SO) and USEC Inc. (NYSE:USU) 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.

USEC Inc. closed Friday at $4.43, gaining $0.08, or 1.84 percent. The Southern Company closed at $38.33, rising $0.49, or 1.29 percent. Uranium Resources, Inc. closed at $2.01, up $0.08, or 4.15 percent. Paladin Energy closed in Toronto at $3.72, increasing $0.07, or 1.92 percent.

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.

Big Option Action on (CCJ) (TSL) (LDK) (SHAW) (USU)

Shares of Cameco (NYSE:CCJ), Trina Solar (NYSE:TSL), LDK Solar (NYSE:LDK), Shaw Group Inc. (NYSE:SHAW) and USEC Inc. (NYSE:USU) have been seeing some serious option action in response to the potential fallout from the earthquake and nuclear concerns in Japan.

Also having huge activity was the iShares MSCI Japan Index Fund (NYSEArca:EWJ), which soared far beyond its usual option and common stock activity.

According to data from Livevol, the the fund's options "implied volatility," was up almost 63%.

Jonathan Bensimon, Société Générale's head of equities and derivatives trading in New York, said, "The sentiment is that (Japan) could be a catalyst for a wider crisis ... if the Japanese consumer is hurt, it could hurt China, it could spread out."

Trades on the ETF were focused primarily on the March $9 puts to sell, which expire on Friday.

Concerning options on Cameco, that was largely centered on call options to buy shares over puts. Jon Najarian, co-founder of OptionMonster.com explained that saying in a note to clients, "The options [are] simply too expensive and the moves too great already to jump in and hedge exposure."

Shaw Group Inc. and USEC Inc. also some some significant option action on them.

In solar, options traders were interested in Trina Solar Ltd. and LDK Solar Co., which were looking for short-term upward movement in Trina stock, while LDK investors were looking at a call butterfly, targeting options which will expire in September.

iShares MSCI Japan Index Fund closed Monday at $10.05, down $0.76, or 7.03 percent. Cameco closed at $32.62, down $4.76, or 12.73 percent. Trina Solar closed at $26.00, gaining $1.77, or 7.30 percent. LDK closed at $11.58, up $0.94, or 8.83 percent. Shaw Group closed at $34.87, falling $3.54, or 9.22 percent. USEC ended the session at $4.59, losing $0.57, or 11.05 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.

Cameco (NYSE:CCJ), USEC (NYSE:USU). Denison (AMEX:DNN), Grab Market's Attention

The nuclear story has been somewhat eclipsed and questioned over the last several months because of the emerging natural gas story and its implications for the industry, but new attention and reminder of China's growing nuclear demand has brought uranium suppliers Cameco (NYSE:CCJ), USEC (NYSE:USU). Denison (AMEX:DNN) into the limelight once again.

Cameco and USEC have attracted options traders, and Denison, along with Cameco, have been upgraded by RBC Capital on the renewed interest in the sector.

The reason nuclear has been overshadowed is there is now uncertainty with the understanding of the enormous supply of natural gas around the world, especially in the U.S., which has changed the energy picture tremendously.

Low-cost natural gas has already caused some nuclear projects to be put on hold, but it's doubtful if the majority of China's nuclear reactors won't continue or start to be built.

That mean uranium prices will continue to go up because Supply of uranium is tight, and China isn't the only country building out nuclear energy.

Even though generally overlooked, Denison and Cameco have still performed strongly since the middle of the summer, while USEC has been pretty much level.

Cameco closed Tuesday at $36.81, gaining $1.07, or 2.99 percent. Denison closed at $2.65, losing $0.15, or 5.36 percent, although they gained that back and more in after hours trading. USEC closed at $5.50, shooting up by $0.32, or 6.18 percent.