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Seeking Alpha reported the uranium sector is expected to make a turnaround with stocks rising back slowly after plummeting in 2011 following the Fukushima nuclear disaster.
Seeking Alpha reported the uranium sector is expected to make a turnaround with stocks rising back slowly after plummeting in 2011 following the Fukushima nuclear disaster.
As quoted in the market news:
I picked USU over the other two miners almost solely because that it is one of the main suppliers to the Department of Energy. On June 13th, it received a $280 million investment from the DOE. This news caused the stock to spike up on very heavy volume. After the spike, it pulled back to consolidate. But then it rose again, and spiked on June 27th, when it said it expects to make $1.9 billion in revenue for the year. On the fundamental side, that is far more than the $106 million in market cap it currently has. If the June 30th cash balance reaches $200 million as expected, they will have almost twice as much cash as market cap, meaning the stock should theoretically be worth about twice its current value or more. On the technical side, the spike-pullback (consolidation)-spike on heavy volume likely scared many short sellers to cover and bears to run away.