Consider Uranium Miners

With $55 billion in nuclear loan guarantees in the 2011 federal budget, the Obama Administration is making sure that nuclear power will be a growing part of the Americas energy diet. Combining this with the 112 reactors in operation plus 37 under construction in Asia and the current plans to build 87 more within the region and you have a very bullish outlook forward the industry going forward. China, alone purchased 15 million pounds of uranium in 2009. Despite this positive growth in the sector, a supply glut in uranium has driven prices downward from a 2007 peak of $136 per pound to current prices of near $40. This plus the current negative market sentiment have pushed shares of the uranium miners down, some off as much as 20 percent. Investors could use the current price glut and market downturn to load up on shares of the uranium miners as their products will be in great demand going towards the future. As the largest miner of the mineral, Cameco CCJ should be given preference. However, companies such as Uranerz Energy URZ or Uranium Energy UEC could be portfolio weightings as well.