Aug 23, 2012

Posted by in Commodities | 0 Comments

Investing In Uranium Penny Stocks

The Reputation of Uranium Penny Stocks

It has to be said that the reputation of uranium penny stocks has suffered as a result of the nuclear disaster that occurred in Japan, although despite that setback there is still hope. The demand for electricity around the world shows no sign of slowing down, and that fundamental fact means that the future still looks bright, especially as nuclear power and natural gas are the only two realistic alternatives.

Most analysts still regard uranium penny stocks as a viable option and predict that the stocks will thrive, despite the temporary setback. Prices are still a lot lower than when the stocks were being priced based on future demand.

Uranium Penny Stocks- Some Promising Plays:

* A sensible move to diversify prospects into other areas of development has been made by LBSR (Liberty Star Uranium and Metals) and a large copper mine in Arizona is the focus of much of the efforts. This strategy means that the company is able to make money on ordinary commodities until there are profits to be realized from nuclear materials.

* Wyoming based URZ (Uranerz) has found itself in the high end of penny stocks, as its stock price has fallen from 6.0 to 1.4. However, the company’s stock definitely appears to be on the uptick and most analysts assume that it has bottomed.

* The Athabasca region of Canada is home to almost 25 percent of the world’s uranium production, and HAT (Hathor Exploration) has a significant lease in the area. Hathor has proven to be strong and reliable when faced with poor news from the market, and although it is technically a uranium penny stock, it trades at a high level.

One strategy for investors is to choose something that is diversified that will later on add a nuclear aspect to its performance. The other recommended and viable option is to buy something that has been oversold to a large extent and then wait fort it to rise along with the nuclear power industry. The key thing to remember is that you should not expect penny stocks to yield quick profits.

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