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Uranerz Energy Could Pop On Russell Inclusion

Written By Brian Hicks

Posted July 6, 2011

The last time Uranerz was added to the Russell Indexes, it jumped from about 75 cents to more than $2.50 — a 233% gain in no time at all.

Nice, right? What’s even nicer is that you have a second shot at those kind of gains, last seen in 2009.


Uranerz was just re-added to the Russell Indexes for the second time, and it looks like no one’s noticed yet.

You see, the bears have investors thinking nuclear energy is a thing of the past. But that couldn’t be farther from the truth…

Increasing global energy needs — particularly in China and India — should help boost demand for nuclear energy (and uranium) over the next three to five years, with an even greater growth story over the next 10 years.

And at these bargain basement prices on uranium stocks, now is a great time to buy.

Uranium Use Ramps Up Worldwide

We discussed back in May the plans for energy-hungry countries with booming populations to incorporate more nuclear in their national energy agendas.

Last month, we learned China is likely to increase its share of uranium demand from 5% of global demand this year to more than 20% of global demand by 2020.

Last week, France bucked the anti-nuclear trend by pledging more than $1.4 billion for atomic power. As President Nicolas Sarkozy recently pointed out, “There is no alternative to nuclear energy today.”

And it seems unlikely for the United States not to follow Germany’s knee-jerk reaction on nuclear power. In fact, the U.S. is already taking steps in the same direction. In late April, the U.S. Nuclear Regulatory Commission renewed the Palo Verde nuclear station license in Arizona for 20 years.

This doesn’t sound like the world wants to cut back to me… It sounds like demand is about to explode.

Other Uranium Stocks to Own Now

Besides URZ, buy stocks like Cameco (CCJ) and UR-Energy (URG).

My buddy Luke Burgess has pinpointed this stock as one of the year’s hottest plays.

Projecting $100 over the next year, Luke believes this company stands to massively capitalize on the world’s last giant uranium resource. And rest assured, the buyers aren’t waiting around… Don’t wait to read Luke’s latest report on this game-changing company.

As for Ur-Energy (URG), this is a small uranium miner making big moves in the industry, expecting to reach production in the next 12 months with its Lost Creek project.

What’s nice about this stock is that it just received a favorable ruling from the U.S. Nuclear Regulatory Commission (NRC), which determined “there are no major environmental impacts that would preclude licensing Ur-Energy’s proposed Lost Creek in situ recovery project, in its final Supplemental Environmental Impact Statement (SEIS) for the project.”

urg stock

Like I said, ignore the uranium bears.

Load up on them. Forget you have them. And check back on them in a few months.

Just be patient. In this market, nothing happens overnight…

Stay Ahead of the Curve,

Ian Cooper Signature

Ian L. Cooper
Analyst, Wealth Daily

P.S. Despite rumors of an NFL settlement, there’s been no decision yet. And our NFL Lockout Stocks haven’t seemed to notice… Since that report, those stocks are now up:

  • DirecTV (DTV) ran from $47.92 to about $52

  • Electronic Arts (ERTS) ran from $22.49 to more than $24.50

  • Buffalo Wild Wings (BWLD) exploded from $60.44 to more than $66.90

  • Under Armour (UA) ran from $73 to more than $79.40

  • And Anheuser-Busch (BUD) ran from $56.74 to more than $58.37

If you have the chance, we’d love to hear how you did with these trades. Send us an e-mail directly and let us know.