Investing in Nuclear Energy

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setanta1

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I've been wondering how I could, as a small investor, get some exposure to what I believe will be an explosion (I know, poor choice of word) in new nuclear power facilities over the next 5-15 years. I think fossils are running out, and come from unstable sources, while the alternative sources are not going to be viable for another generation or so. As far as I can see the main builders of nuclear power stations are either state-owned (e.g Areva) or part of a diversified group (e.g. Westinghouse). I'm finding it difficult to identify a way to get in on the action. Ideally some type of a fund or EFT-type vehicle would be better than taking a punt on one or two stock. Any thoughts?
 
A quick Google suggests that there are more than a few ETFs (not EFTs) linked to the performance of the nuclear energy sector in some shape or form. You may need to buy these on US or other foreign markets though - perhaps through a discount online broker.
 
Thanks Clubman
I'd been down this road but I haven't really found funds or ETFs that focus on the building (as opposed to operation) of power stations, and even with those funds that did have some exposure to the operation of nuclear power stations are diluted with investments in other energy sources. I have identified a couple of single stock plays, but in general I prefer pooled investments. It may be however that the focus I'm looking for is too narrow.
 
For the moment I think any play on this or uranium will have to be a DIY job as there are not enough companies out there to justify it - it's a pretty narrow sector for an ETF which usually track broader markets such as energy etc.
 
Hi folks. I've acted here and happy to share. You are right about ETF's the sector is too narrow. I bought Cameco a Canadian plc that is the world leader in uranium for nuclear reactors. Check it out on Yahoo. It is still not overpriced imho
 
setanta1 said:
I'm finding it difficult to identify a way to get in on the action. Ideally some type of a fund or EFT-type vehicle would be better than taking a punt on one or two stock. Any thoughts?
Click to expand...

There's a fund trading on the LSE (AIM) that concentrates on investing in uranium and nuclear power opportunities. Use google to find it:
"investing in uranium and nuclear power"
...or PM me for details.
 
Thanks whathome
Found that fund and had a look at the original prospectus. At launch the minimum investment was £70,000, which would be many times what I'd like to invest, but perhaps it can be picked up in smaller quantities now.
Thanks too to DirtyH2O, I had looked at individual uranium mine stocks, I think there's one in Australia too.
Another interesting part of the process is uranium enrichment. This is a process that is covered by restricted technology and at least one firm is a quoted company, with, apparently, a monopoly in the US market!
 
Murt10 said:
Here's another article on Uranium.

Now that I think about it I'm beginning to wonder whether it's an industry that's worth a punt on. One of the few certainties in life is that the reserves of fossil fuel are finite and being used up very quickly. A replacement source of energy will have to be found.

http://www.moneyweek.com/file/23156/how-to-profit-from-the-growing-demand-for-uranium.html


Murt
Click to expand...

That article is written by Jim Slater (Slater Walker) and while he does disclose his vested interest I don't think it should be considered as anything other than a sales promotion and certainly not as source of information about uranium investing
 
International Nuclear Solutions is the company - do your home work though as they are not big
 
Murt10 said:
One of the few certainties in life is that the reserves of fossil fuel are finite and being used up very quickly. A replacement source of energy will have to be found.
Click to expand...

Oil & gas might be running out, but be aware that there's a vast amout of coal left to be mined. Just something to consider.
 
Merrill Lynch have a New energy Fund Can buy it through Rabodirect) that invests in new energy technologies, new alternative forms of power etc. Not really nuclear, more renewable, but at the same time with all the State subventions and backing that renewables are getting around the world now, they should do very well also in the next few years.
 
The smartest money in global warming stocks may be scurrying to the exit just when the enthusiasm for alternative-energy companies is at an all-time high, Bloomberg reported on Monday.

[broken link removed]
 
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