Nuclear Stocks: Too Hot for an Eco Portfolio?

Guest Author Nuclear energy is not the “bad boy” it once was For many years, nuclear energy was labelled as a potential threat to the environment as well as the global population.  Interestingly enough, the memories of the disasters at Chernobyl and Three Mile Island are now distant and the perspective of nuclear energy is changing in positive fashion.  The growing worries created by the ballooning demands on the world’s energy sources, an increase in the competition for energy supplies, rising concerns regarding global warming, and the volatility of the gas and oil prices are reasons that...

Nuclear and Solar From Down Under

by Debra Fiakas CFA Last week the Aussies invaded New York City, bivouacking at a popular hotel and parading a string of Australia-based companies in front of investors.  Of course, there were the usual mining and minerals companies for which resource-rich Australia is so famous.  However, the Australia Stock Exchange  -  one of the event sponsors  -   has diversified with listings in communications, biotechnology and alternative energy. One of the presenters, Silex Systems, Inc. (SLX:  ASX and SILXY:  OTCQX) is a talented little company with technologies for solar and nuclear power generation.  Silex has developed a laser...

Clean Energy Stocks to Fill the Nuclear Gap

Tom Konrad, CFA If the Japanese use less nuclear power, what will take its place? I'm astounded by the resilience and discipline of the Japanese people in response to the three-pronged earthquake, tsunami, and nuclear disaster, perhaps in large part by my cultural roots in the egocentric United States, where we seem to have forgotten the virtue of self-sacrifice for the greater good.  Yet while Japanese society has shown itself to be particularly resilient, the Japanese electric grid is much less resilient.  According to International Energy Agency statistics, Japan produced 258 TWh of electricity from...
Uranium is usually traded as yellowcake, U3O8

Yellow Cake Debut

by Debra Fiakas, CFA Investors have a new opportunity for a stake in nuclear power.  Last week a successful initial offering was staged by a new player in the uranium supply chain.  Yellow Cake, plc. (YCA: LON) sold 76 million shares at £200 per share, raising £151 million (US$200 million). Uranium Participation Corporation (U:  TO)took US$25 million of the deal, giving the Canada-based uranium speculator a 16% stake in the company.  Yellow Cake is listed on AIM under the symbol YCA.  In its third day of trading the stock closed up 1.25% from its debut. Yellow Cake means to be a player in the uranium market, buying and...

Epic Changes Are Coming in the Electric Power, Transportation and Energy Storage Sectors

John Petersen Epic is the only word I can use to describe an evolving tragedy that killed tens of thousands of people, inflicted hundreds of billions in property damage, destroyed 3.5% of Japan's base-load power generating capacity in a heartbeat and will cause recurring aftershocks in the global electric power, transportation and energy storage sectors for decades. While I'd love to believe the worst is behind us, I fear the times of trouble have just begun. Since it's clear that Japan will have to turn inward and serve the urgent needs of its own population first, the...

A Light At The End Of The Bridge For Lightbridge?

by Debra Fiakas CFA Earlier this week nuclear fuel technology developer, Lightbridge Corporation (LTBR:  Nasdaq), reported year-end 2015 financial results and provided an update on recent accomplishments.  Not unexpectedly, Lightbridge reported a net loss of $4.3 million or $0.24 per share for the year.  During the year the company scraped together $900,000 in revenue from consulting services, an effort to leverage the expertise of its scientists and engineers as they continue work on new fuel technologies.  The contribution margin of the consulting work was $216,239  -  not nearly enough to cover administrative spending or the costs of...

Four Green Money Managers’ Top Stock Picks

Green money managers' stock picks after the Japanese nuclear crisis. Even as the nuclear disaster in Japan unfolds, it's clear that the world's energy industry will be forever changed. Russian reactors were never considered safe, but a Japanese to have a nuclear meltdown is an entirely different story. Market Reaction Since Monday, nuclear stocks and ETFs have been plummeting. As of Wednesday night, The Market Vectors Uranium + Nuclear Energy ETF (NYSE:NLR), the iShares S&P Global Nuclear Energy Index (NASD:NUCL), PowerShares Global Nuclear Energy Portfolio ETF (NYSE:PKN), and the Global X Uranium ETF (NYSE:URA) are down...

Nations in Nuclear Play And The Companies To Benefit

by Debra Fiakas Saudi Arabia plans to build 17.8 gigawatts of nuclear capacity by 2032, requiring about sixteen reactors.  It is an ambitious plan and one that could have a significant impact on the nuclear power construction industry.  Now the Saudi government is moving forward with a bidding process with nuclear power plant construction companies.  Bids are expected before the end of 2018 and signing of contracts will be sometime in 2019. Our review of possible bidders began with Toshiba’s (6502:  Tokyo) Westinghouse Electric Company and Russia’s Rosatom Group.  The last two posts, “Saudi Arabia Goes Nuclear” on January 16th and “Answering Saudi Arabia Request...

Watch This Nuclear Player Boil

by Debra Fiakas CFA The last post on Chicago Bridge and Iron (CBI: NYSE) noted the entrance of CBI into the nuclear field with the acquisition of The Shaw Group, which has an exclusive relationship with Toshiba Corporation related to the Toshiba Advanced Boiling Water Reactor (ABWR).  More evolutionary than revolutionary the ABWR is supposed to be superior other designs in its light water reactor class.  ABWR produces power by superheating water to the boiling point. The resulting steam is then used to drive a turbine attached to a generator.  Other light water reactors also heat...

Exelon’s Dividend Siren Song

by Debra Fiakas CFA When the market gets volatile, many investors dive behind the protective shield of dividends.  Exelon Corporation (EXC:  NYSE) is an owner of nuclear power generation plants and is included in Crystal Equity Research’s Atomics Index of companies using the atom to create energy because more than half of its power output is generated at nuclear power plants.  The company offers a handsome dividend near $1.24 per year.  Granted it is not a small-cap company, which is the usual target for this column, but yield is beguiling.  At the current price the dividend yield is...
uranium spot price

Spotting A Uranium Rebound: Inventories Are Key

The chart of spot uranium prices presents a dismal picture for this key energy commodity. After a brief spike in early 2006, the spot price has been in a long-term slide down hill. In the last year and a half it appears the price as found a level of support at the $20.00 price level as the shares have bounced around between that support level and up to the high 20s. With each bound higher shareholders of uranium producers cheer the end of what has been a long ‘down’ cycle. A click up to US$27.50 in recent days has...

Lightbridge Flirts with Areva

by Debra Fiakas CFA Last week nuclear fuel developer Lightbridge Corporation (LTBR:  Nasdaq) announced an agreement with nuclear power plant builder Areva (AREVA:  Paris; ARVCF:  OTC/QB) to form a joint venture.  The present pact is a precursor to a formal joint venture agreement that would team up the two companies  -  one very large multinational nuclear power house and one still quite small fuel developer  -  in joint development of Lightbridge’s metallic nuclear fuel technology. Lightbridge has developed and patented a novel design that replaces conventional tubes filled with ceramic uranium pellets now used by pressurized...

Yankee Graphite

Several graphite developers have made plans to integrate forward into the hottest segment of the market  -  battery-grade graphite.  According to Industrial Minerals, spherical graphite suitable for lithium ion battery anodes is priced in a range of $2,700 to $2,800 per metric ton in China where many battery manufacturers are located.  This compares quite well to the range of about $655 to $790 per metric ton for flake graphite concentrate. The integration strategy has sent the sector into a frenzy of activity to prove their graphite meets expectations of battery manufacturers.  The only graphite deposit in the U.S. mainland is under development by Westwater Resources...
nuclear power plant

List of Nuclear Energy Stocks

Nuclear energy stocks are publicly traded companies that develop, own, or manage nuclear power plants or the technology and equipment used in such plants. Ameren Corp (AEE) Areva (ARVCF) Brookfield Business Partners (BBU) Cameco Corporation (CCJ) China General Nuclear (1816.HK) Dominion Energy Inc (D) Duke Energy Corp (DUK) Exelon Corp. (EXC) FirstEnergy Corp (FE) General Electric (GE) Global Power Equipment (GLPW) Global X Uranium ETF (URA) IBC Advanced Alloys Corp (IAALF) International Isotopes (INIS) Kansai Electric Power Co Inc (9503.T) Korea Electric Power Corp ADR (KEP.KS) Lightbridge Corporation (LTBR) Mitsubishi Heavy Industries Ltd (7011.T) PG&E Corp (PCG) Public Service Enterprise Group Inc (PEG) Siemens (SIEGY) Silex Systems Limited (SLX.AX) Toshiba Corporation (6502.T) UR Energy, Inc. (URG) iShares S&P Global Nuclear Energy Index (NUCL) VanEck Vectors...

NextEra Energy: the Real Attraction

by Debra Fiakas CFA One member of the NuStart Energy consortium of nuclear power developers is Florida Power & Light or FPL Group, a subsidiary of NextEra Energy (NEE: NYSE).  The group had its sights on getting a nuclear power plant construction and operating license from the Nuclear Regulatory Commission (NRC).  The company operates the third largest nuclear power generation fleet in the U.S. composed of eight nuclear reactors at five plant sites.  The fleet is far flung, ranging from Florida to New Hampshire and Wisconsin and West to Iowa. FPL is working on an expansion of...

Offshore Wind A Big Part Of Why GE Wants Alstom

Who's the Energy Alpha Dog? GE or Siemens? By Jeff Siegel General Electric (NYSE:GE) wants to acquire one of the largest companies in France, and it could get what it wants if Germany doesn't get in the way. Alstom SA (AOMFF), the target of GE's desires, is a French energy and transportation company with a market value of approximately $11.5 billion. It deals in hydroelectric and nuclear power, environmental control systems, wind turbines and battery storage, as well as trains and rail infrastructure. It's a huge company, and GE could spend as much as $13 billion to...