Cameco Corporation (USA) (CCJ): Nuclear’s Health Risks Are Over-Inflated

The company uses in-situ technology to extract Uranium Resources, Inc. (NASDAQ:URRE) without digging up huge swaths of land. It already has some operating facilities, but it is expected to lose $0.30 per share in 2014. Thankfully, the firm has little debt with a total debt to equity ratio of just 0.12. With a $45 million market cap the company is highly speculative. Until it is cash flow positive, it is a firm best left on the watch list.

Market Vectors Nuclear is a small ETF that offers a good look at the entire nuclear industry. Its largest position is in the nuclear-oriented utility Exelon. Its position in Mitsubishi offers exposure to the construction side of the nuclear industry. Uranium Resources, Inc. (NASDAQ:URRE) miners like Cameco also form a major part of its holdings.

For a niche ETF with a market cap around $70 million, its net expense ratio of 0.60% is reasonable. The fund is a great look at the entire fuel cycle and the global economy. Approximately a quarter of the holdings are in the United States, a quarter in Canada, and a quarter in Japan. Overall this ETF will be more stable than a small mining firm like Uranium Res because of the large caps it holds.

Conclusion

In the long term the nuclear industry is very safe. The above study showed how coal is more dangerous for the workers and the public. Cameco Corporation (USA) (NYSE:CCJ) is a strong miner with profitable operations and high quality mines. Market Vectors Nuclear is another strong investment with diversified exposure to many parts of the nuclear industry. Uranium Res is the one company that should be avoided due to small size and continued stock dilution.

The article Nuclear’s Health Risks Are Over-Inflated originally appeared on Fool.com is written by Joshua Bondy.

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