[VIDEO] Market Minute: Mega Uranium Ltd. (CVE:MGA), NexGen Energy Ltd. (CVE:NXE), NXT Energy Solutions Inc. (CVE:SFD)
Today’s market action was a continuation of the waking of the Uranium beast, with Mega Uranium Ltd. on the TSX (CVE:MGA) clocking just shy of 5 million shares closing up two cents to 12 and a half cents…that represents a 19% boost to the company in one day.
NexGen Energy Ltd (CVE:NXE) closed its second consecutive 52 week high in a row up another 3 cents to close at 64 cents. We interviewed CEO Leigh Curyer today in London, and that podcast will be available to subscribers this weekend and published to the public in about 10 days time.
According to Curyer, the bump in Uranium interest suddenly is a result of a Japanese court’s decision to allow restart of the Kyushu Electric Power Co.’s Sendai nuclear power plant.
Cantor Fitzgerald’s Rob Chang spoke on BNN yesterday, asserting that the decision would cause a ‘violent upswing in uranium prices’. We think that is overstated here at Midas Letter, as starting two reactors is hardly going to create a supply deficit in the global inventory of uranium.
To the bull case, this comes on the heels of last weeks announcement by India’s prime minister during his visit to Canada that India would be buying 3,000 tonnes of uranium over the next 7 years. Thats $273 million worth at today’s uranium price of 39$.
Bear in mind that despite hundreds of reactors on the drawing boards, no banks and few governments can afford the huge capex to build right now, nor the liability that will come with another nuclear disaster. There has never been a major nuclear power plant built that did not have the government as its final backstop of legal liability, both financially and socially.
To what degree Rob Chang’s bullish statements are responsible for the push into Canadian uranium stocks will be clear if the bull rally fizzles next week. If it doesn’t, it just might be time to start building a uranium portfolio.
Google “Nuclear Power is all but Dead in America” to find Bloomberg’s take on the challenges facing nuclear energy in the US.
That’s neither here nor there for NexGen Energy however, as the company’s drill results are the main driving force for the company’s share price, according to Curyer.
Other movers and shakers on the venture today included Midas Letter fave Patient Home Monitoring (CVE:PHM) trading another monster 6.85 million share trading day down for the second session in a row after a series of 52 week highs as punters and acquires unload stock at a profit.
Keep an eye on PHM and think of these dips as acquisition opportunities because you know this things got lots of legs in it with every new acquisition. The company closed down 12 cents at a Buck 63 .
Another long term portfolio holding NXT Energy Solutions (TSX.V:SFD) notched its second 52-week high in a row closing at $2.32 on light volume of 70,000 shares traded, As did Apivio Systems Inc. (CVE:APV), up 7 cents to close at 64 cents on 1.6 million shares, and Zaio Cor. (CVE:ZAO) also closed on a 52-week smiley adding 3 cents to close at 29 and a half cents.
Gold took a big hit today closing down $16.30, silver followed suit, but copper piled on another three pennies to close at $2.74 a pound. Crude Oil lost half a buck to close at $57.22 and that’s your Midas Letter Market Minute. Hope you have a great weekend and see ya next week.
Subscribers to the Midas Letter this week are going to hear about new coverage on two pubcos and a private sector opportunity for the Accredited crowd.
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