Why Uranium Energy Stock Just Jumped 11%

Why Uranium Energy Stock Just Jumped 11%

What happened

Shares of uranium mining company Uranium Energy ( NYSEMKT:UEC ) jumped 11% as of 2:50 p.m. EDT Wednesday after The Wall Street Journal reported this morning on how "day traders are driving uranium prices higher."

The cost of yellowcake has risen 46% since early August, reported the Journal , hitting $47.10 per pound — and according to data from TradingMarkets.com, it’s up another 3.7% today. Image source: Getty Images. So what

Does a 3.7% rise in the price of a product justify an 11% rise in the price of a stock that produces that product, though?I’m not so sure it does. Fourteen years ago, uranium hit an all-time high price of $137 a pound, roughly triple today’s prices. But at today’s price of $48.85 per pound, uranium still needs to rise another 23% before it even reaches the $60-a-pound level at which experts at MiningReview.com believe mining uranium […]

About the author: StockMan
Any information posted on the website has been prepared without taking into account your objectives, financial situation or needs and as such, you should before acting on the information or advice, consider the appropriateness of the information or advice in relation to your objectives, financial situation or needs. Please be aware that any information posted on this site should not be considered to be financial product advice.
Posting Guidelines
Do
  • Do contribute something to the discussion
  • Do post factual information, analysis and your view on company valuations
  • Do disclose if you have an interest in a security
  • Do take our Terms of Use seriously
Do Not
  • Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
  • Do not complain about a post unless you have reported it first, and not on the forum.
  • Do not post financial advice
  • Do not advertise or post sponsored content

Get involved!

Get Connected!

Come and join our community. Expand your network and get to know new people!

Comments

No comments yet