Uranium Stocks Punished Despite Energy Rally

• By the tickerspy.com Staff
• On 1:16 pm EDT, Thursday October 15, 2009

Uranium stocks slipped sharply across the board on Thursday after news of a downgrade and share offering.

Uranerz Energy (AMEX: URZ - News) is leading the uranium stock sell-off today after announcing plans to issue an additional ten million shares on U.S. and Canadian exchanges for gross proceeds of up to $20 million. The dilutive impact of the offering is sending the stock down by -12% for the session.

Meanwhile, Uranium Energy (AMEX: UEC - News) is off by -5% after RBC downgraded the stock from Sector Perform to Underperform. The stock remains the industry's top performer over the last month, up by 17%.

Other components of the Uranium Stocks Index are also in the red today, dragging its performance down by -4.2% as a whole.

According to yesterday's report by Bloomberg, Rio Tinto's (NYSE: RTP - News) uranium miner subsidiary Energy Resources of Australia forecast flat output levels relative to the prior two years through the end of 2009.

Saskatoon, Saskatchewan-based Cameco (NYSE: CCJ - News) announced that it will move its U.S. headquarters to Cheyenne, Wyoming from Lakewood, Colorado, according to yesterday's coverage by Forbes.com.

USEC (NYSE: USU - News) is the day's only winner, although it is one of two stocks in the sector to stay negative over the last month. The company is still recovering from a blow dealt by the U.S. Department of Energy, which denied the company its expected $2 billion loan guarantee in July.

URS (NYSE: URS - News) and Exelon (NYSE: EXC - News) are helping the Nuclear Stocks Index higher today, possibly with the help of oil's rally above the $77 mark.

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