Energy Q&A Part III: Investing in Uranium Stocks

by BWK ~ June 19, 2008

Q: “I would very much appreciate your opinion and discussion of uranium mining stocks, as well as the future of uranium, in light of the oil price.”

I think that Denison Mines (DML: TSX) is a well-managed uranium mining company with great future potential. It’s a buy.

I think that Cameco Corp. (CCJ: NYSE) is a poorly managed company that is sitting on a great uranium reserve position. Cameco is a hold — only because I pray every night that someone comes along to buy it out and install new management.

I recently recommended Curtiss-Wright Corp. (CW: NYSE) to my Outstanding Investments readers as a nuclear power play. Curtiss Wright is a key manufacturer of nuclear plant equipment. In the U.S., almost everything that goes into a nuke plant has to be “certified” with the Nuclear Regulatory Commission (NRC). Without the NRC certification, it is very hard to sell into the nuclear equipment base.

Thus, Curtiss is in a great position to supply parts and equipment to the existing nuclear installed base in the U.S. Also, Curtiss is well positioned to supply new equipment for the growing world base of nuke installations. I have great expectations for Curtiss-Wright over the next couple of years.

Stay tuned for one more Energy Q&A update…

Byron King

Note: Byron King is a frequent contributor to the free e-letter Whiskey & Gunpowder. To receive daily insights into energy, oil, commodities and other natural resources sign up here!

Additional Resources
Market Insight - Fundemental Resource Demand Is There
$225 Per Barrel - The New Gov’t Standard For Oil

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