@LEU: Centrus Energy Corp. is a supplier of enriched uranium for nuclear fuel and services for the nuclear power industry.
Despite the price volatility I believe this to be a long term play on nuclear energy. The US has had a longstanding commitment to nuclear energy which I believe will only strengthen.
Current price action has strong positive momentum and I am looking to add to my position which I have held since 2020.
I would be interested to hear others take on this.
If you've held it since 2020 you've doubled or trebled your money depending on exactly when you invested. So that's a pretty useful return over 4 years. And I think you're correct in that nuclear energy could have excellent prospects in the USA. Your question is basically: Is this a good time to top up your holding? There's nothing I can see in the TA or FA to give even an educated guess on this one. The fundamentals are somewhat unexciting so the long term price depends on how well they compete in the nuclear industry. The technicals show a strong short term uptrend - but over the last 4 years there have been 4 strong uptrends that have subsided dramatically after peaking, suggesting lack of confidence in the company in the market. If I were to invest in Centrus Energy (ASQ:LEU) I would go in cautiously and have it as 1 or 2% of my portfolio, at most. If I already had a holding, I might increase it by 25% with a tight stop loss.. It could easily fall from $45 back to $30. But if you're buying to hold with a ten year time frame, it could do very well for you - as your post implies. In summary, this is a speculative stock, with the potential to double or treble over the next 5-10 years, or better. My personal preference, if I were speculating in the energy sector, would be to go for a renewable ETF like iShares Global Clean Energy UCITS ETF USD (Dist) (LON:INRG) which looks as if it's bottomed out (I hold). Good luck with what you decide. I'll be interested to read other people's opinions.
I have a small holding, sold some recently. Yes very volitive, try and buy low and sell above $40. I would not be buying now, I would wait for a pullback.
Thanks William for your detailed reply. I also hold the iShares Global Clean Energy ETF to spread my risk in this sector. I will be topping up my holding in Centrus as I feel the case for nuclear energy is extremely strong especially within the US.
Believe Centrus Energy (ASQ:LEU) has a Nuclear Regulatory License for enrichment, and not many others in the US.
Uranium ore must first be “refined” into yellowcake, a substance that resembles “yellow chalk” before undergoing “conversion” into a gas and then “enriched” to a level where it can be used as fuel rods in a reactor. Suspect not many in the space.
Russia has 43% of the global enrichment capacity”, followed by Europe (33%), China (16%) and the US (7%). Presume some in Canada (Cameco (TSE:CCO) but don't know % or for Australia. Need to research sorry.
So any safe jurisdiction plays should have a good future if their IP and licensing provides a good moat.
