Saturday, November 27, 2010

Two Uranium stocks that have seen interest

With the news that China may be building more nuclear power plants than originally thought, there has been a big move upward in many within the space. Two stocks have seen large gaps upward as Cameco has announced it will be increasing production. CCJ is not as aggressive with respect to uranium pricing do to its legacy contracts so if one is interested in large moves one may want to start a position in DNN or URRE. Both of these stocks are highly volatile, but with good reason. They don't offer their uranium at contracted prices like Cameco, and will assume the full spot price when pricing moves upward. I just placed a position last week with DNN. Also have added USU. Keep watching these names as they will all move higher quickly on spot pricing going upward.

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