UEC - Is Uranium Energy Stock a Buy?
2024-06-17 05:15:00 ET
Management at Uranium Energy (NYSEMKT: UEC) chose to buy uranium at a time when uranium prices were near historic lows, which was a very difficult moment to make such a decision, and it built up a nice stockpile. The company deserves credit for that, because it is now reaping the benefits by selling uranium while ore used to make nuclear fuel has increased in value.
The stockpile of ore is one of the main reasons investors are considering buying the stock right now as the company works to build out a uranium mining business. But there are other factors that need to be considered as well. Here's what you need to know before you buy Uranium Energy.
After the Fukushima nuclear meltdown in 2011, governments around the world started to question their commitment to nuclear power. Germany went so far as to plan an exit from the nuclear power space. That sizeable negative sentiment around nuclear power had a detrimental impact on the price of uranium.
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Is Uranium Energy Stock a Buy?