Uranium Demand to Increase with Future Nuclear Programs in Emerging Markets; Special Report by Penny Stock Detectives
In a recent Penny Stock Detectives article, editor Sasha Cekerevac notes that while the uranium sector has seen a dramatic
(prHWY.com) August 23, 2012 - New York, NY -- In a recent Penny Stock Detectives article, editor Sasha Cekerevac notes that while the uranium sector has seen a dramatic contraction following the Japanese nuclear disaster, things appear to be shifting. Cekerevac believes uranium demand is set to increase over the next decade as many nations, particularly the emerging markets, are set to increase their nuclear programs.
"With this demand comes the need for uranium supply, which will have positive implications for certain mining stocks in the sector," says Cekerevac.
Investors in mining stocks always look to the future, states Cekerevac. With the energy crisis unfolding, he notes that the U.S. is now proceeding with building the first nuclear power plant in over 30 years. According to Cekerevac, the world needs more energy and that will come from uranium. For the time being, there just isn't a way to harness all of the wind and sun effectively to compete with uranium, believes Cekerevac.
Of the uranium mining stocks out there, Cekerevac points out Denison Mines. This company explores for and extracts uranium mainly in Canada and the U.S., he explains. Unlike some of the smaller mining stocks, he notes, Denison also has some exploration properties in Mongolia and Zambia. The more exploration properties a firm has, the better the potential upside when looking at uranium penny stocks, claims Cekerevac.
According to the Penny Stock Detectives editor, a big asset for Denison is its 22.5% ownership in the McClean Lake uranium mill, one of the largest processing facilities for uranium. If uranium prices do move up substantially, considering the area that has several other large international mining stocks, Cekerevac believes there is the potential for Denison to be acquired.
"The company trades at just over one times book value, which is quite a low multiple for uranium mining stocks," states Cekerevac. "Several peers trade at multiples of over two times book value, and if one of the larger uranium mining stocks were to make an offer, it would have to pay a large premium."
At just over one times book value, this uranium miner appears to offer great value, he concludes.
"With demand for uranium set to increase over time, mining stocks with prime assets like Denison should do very well," suggests Cekerevac. "Any upswing in uranium prices will have a positive impact on Denison's share price."
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