Update: "Uranium Stocks Plunge for Second Day: Are They Buyable? (RTP; CCJ; DNN; URA)"
Original post:
From Mineweb:
While the jury remains out as to the extent of the damage to Japanese nuclear facilities following a massive earthquake, investors took decisive action on Monday and sold down uranium stocks
JOHANNESBURG -
While the jury remains out on exactly what went wrong at certain tsunami-and earthquake-impacted nuclear power reactors in Japan, investors took decisive action on Monday, selling down listed uranium stocks by up to a third. Smaller stocks were especially punished.
During Australian trade, Pitchstone Exploration was sold down by 32% on the day. In early Canadian trade, Forum Uranium, was likewise down by 32%. South Africa-focused First Uranium was down 15% to CAD 0.82 a share. This stock listed five years ago, just ahead of the spike in spot uranium prices, and declined from highs in 2007 of CAD 13.00 a share.
The world's biggest listed uranium producer, Canada's Cameco, was falling 18% on Monday, taking its market value down to USD 12bn. France's Areva, a diversified nuclear name which also mines, was down by a more modest 9% in Euro terms. Australia-listed Extract Resources (market value: USD 2.5bn) was among the least impacted, possibly on the recent buyer interest expressed in Kalahari Minerals, which owns a major stake in Extract.
Prior to the rout, uranium stocks had recovered strongly in recent months, following the increase in spot uranium prices from around USD 40.00 a pound in mid-2010 to over USD 70.00 recently. Quotes on uranium spot prices were not immediately available.
Selected uranium stocks...MORESee also:
Japan nuclear disaster risk receding fast; General Electric's Liability Smaller than Immelt's... (GE; CCJ; HIT)
