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 […]
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