Earlier on Wednesday, the Chinese government said it was tightening it approvals and safety procedures for new reactors as Japanese authorities scrambled to bring a quake-damaged nuclear power plant back from the brink of disaster.
"We will temporarily suspend approval of nuclear power projects, including those in the preliminary stages of development, before nuclear safety regulations are approved," China's State Council said in a statement.
The announcement came as Japan struggled to cool down a nuclear power plant north of Tokyo that was severely damaged by the 9.0 magnitude quake and tsunami.
Enter Cameco (CCJ)
Cameco Corporation operates as a nuclear energy company. The company operates through three segments: Uranium, Fuel Services, and Electricity. The Uranium segment involves in the exploration for, mining, milling, purchase, and sale of uranium concentrate
So why on earth would you want a Uranium stock in your portfolio?
The Uranium selloff, and China's reaction, seems to be knee-jerk reaction to the Japan crisis. However, China has announced plans to boost nuclear power output to at least 80 gigawatts from a current 11 gigawatts.
Mastery Bottom Line:
People aren't going to just flip the switch and shut off Nuclear Power overnight.
CEO Jerry Grandey said the market’s reaction which Cameco’s share price 12% lower on Monday was “largely driven by emotion”, and that the “fundamentals of the industry remain positive".
“We do not anticipate significant effects on Cameco’s business in the short or long term,” he said.
Shares of CCJ are down 30% in the last month. We do not recommend running out and buying CCJ today, but add to your watch list - anything under $25 a share would be a great buy opportunity.
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