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Tag: UUUU

Is NexGen Energy poised to be bigger than Cameco?

Nexgen Energy (NXE) is a recent uranium company that has come into my radar.  I posted numerous times about another company called Energy Fuels Inc (UUUU) but Nexgen Energy appears to be in a better fundamental standpoint.  First, it has discovered multiple uranium deposits and the company continues to find more even the past week.  Second, the uranium deposits are of higher quality than the current mines currently out there.  Third, these deposits are close to the same amounts that Cameco (CCJ) and are poised to overtake the amount of uranium in comparison.

Nexgen Energy is a $750 million cap company while Cameco is a $3.7 billion cap company.  If it were to have equal uranium deposits, there is plenty of growth for Nextgen Energy to grow in the future.  It also recently received $110 million in funding from CEF Holdings.  This company is part of a larger conglomerate of businesses controlled by Li Ka-Shing who also is known as the “asian Warren Buffett”.  He invests in many asian countries and knows the market very well.

China is a energy hungry country that is in process of constructing and completing multiple nuclear plants in the next decade.  Li Ka-Shing knows the market going forward and that uranium will be a necessary commodity for China to fuel their nuclear power plants.  It makes sense that he would accumulate shares in this smaller company that would give him a bigger stake in ownership.  I do believe their is a chance of being acquired in the future but the fundamentals show that Nexgen Energy will have a bullish future ahead as well.

Disclosure: I did recently purchase NXE by selling some of my holdings in UUUU.

Cheap Price to Get into the Future Uranium Boom

You may have noticed my most recent posts (new highs and bullish view) have been regarding Energy Fuels (UUUU).  You should be able to read those two posts to see why I’m bullish in this stock company.  The price is currently at $1.90 which is really cheap.  Technically, there is a lot of volume in this stock and I believe it is being accumulated slowly by bigger hedge funds.  President Trump has mentioned that the USA needs to become a strong player in the uranium market for both military and for clean energy.  It still plays well into carbon emissions as well.

Disclosure: I do own shares in UUUU.

Bullish on Energy Fuels

This is a relatively small-cap stock that has tons of potential.  The risk versus reward is definitely worth the purchase.  The company is Energy Fuels Inc (UUUU) which is a USA based Uranium company.  Technically, it has had nice volume the past few months.  It has formed a nice V-indicator and its time for it to push the boundaries off the $2.50 price which it currently sits at this time.

Fundamentally, the uranium sector is still at a market low on pricing.  It won’t take much to get this going.  Donald Trump tweeted in November that he wants US to ‘strengthen and expand its nuclear capability.’  If Mr. Trump renegotiates NAFTA, it will cost more to import Uranium from Canada to USA.  Energy Fuels Inc would get a nice boost of customers being in USA and, therefore, not being part of the tariff.  You will bet that Mr. Trump will be most bullish on all USA companies and he will give the most benefits to make sure they grow especially if they can offer more jobs.  Also, internationally, if any relations go sour with Russia other suppliers, they won’t want to import Uranium to us.

UUUU is currently at $2.45.  I bought some today.  It is a small cap that DOES have risk but it is worth the reward.