Uranium Stocks Explode On Surging Energy Prices

• By the tickerspy.com Staff
• On 11:31 am EST, Monday November 9, 2009

The volatile uranium sector shot higher on Monday as energy commodities pushed higher.

Energy prices are surging higher to start the week, as the dollar sinks against global currencies and the Dow goes on another triple-digit upswing. Crude oil, still nearly a dollar shy of the $80 mark, is up by 2% today as Hurricane Ida slows output. According to Bloomberg, both BP (NYSE: BP - News) and Chevron (NYSE: CVX - News) have cut output in the Gulf of Mexico because of the storm. Oil-tied equities are moving higher, but they can't catch the uranium sector.

As a whole, the Uranium Stocks Index is up by 4.7% today. Despite the jump, it is currently lagging the S&P 500 by -11% over the last month.

Before the bell this morning, Lewisville, Texas-based Uranium Resources (NASDAQ: URRE - News) reported a third-quarter net loss of -$2.5 million or -4 cents a share on $1.4 million in total revenue. The stock is up by 1% today, and investors will be paying close attention to the firm's cash management moving forward.

Uranium Resources president and CEO Don Ewigleben said, "For the balance of 2009 and 2010, we currently are projecting an average use of approximately $500,000 of cash per month." A decline in uranium prices caused the company to start winding down production in the latter half of 2008, which led to a more than -70% decline in 2009 nine-month uranium sales compared to the first three quarters of last year.

Elsewhere in the uranium sector, Uranerz Energy (AMEX: URZ - News) and Paladin Energy (OTC: PALAF - News) are both up by more than 6% today. Paladin, Uranium Energy (AMEX: UEC - News), and Cameco (NYSE: CCJ - News) are all up by more than 10% over the last five sessions.

Cameco is now the only stock in the Index to turn positive over the last month. USEC (NYSE: USU - News) and Denison Mines (AMEX: DNN - News) are both down by more than -15% for the period.

As of this writing, the Uranium Stocks Index is one of the 20 worst-performing tickerspy Indexes over the last month, down by -10.2%.

Investors can track the Uranium Stocks Index for performance trends and a suite of other metrics at tickerspy.com.

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