Is it Time To Buy Uranium Miners and Nuclear Energy Stocks?
A significant base may be forming in uranium stocks — seen in the Global X Uranium ETF (URA) — as Japan’s troubled nuclear energy industry passed its first major vote since the Fukushima tragedy. Many of the stocks that make up this ETF are down more than 40% such as Uranium Resources (URRE) and Uranium Energy Corporation (UEC). But positive news is beginning to reemerge after three months of naysaying. Fukushima is proving nuclear is here to stay.
In the northern prefecture of Aomori in Japan, citizens gave a resounding vote of confidence to a conservative pro- nuclear governor. He won a third term, turning back a challenger who wanted to freeze all existing plans for the building of new nuclear facilities.
Aomori is not far from Fukushima, thus making it an ideal place to test the issue of which way Japan wanted to go with nuclear power. It is interesting to note that the opponents still seek the negative interpretation of a positive development. They still live in the forty year old past of outmoded plants and don’t acknowledge the new generation of safer, more compact reactors that are being built around the globe.