It is pronounced Nucular

Donald & Friends have unfortunately thwarted my investment plan somewhat.... (for now)

Since I have just presented my entry and the topic, including the "missed" opportunity, is close to my heart, I will probably work through it right away.

To cut a long story short, when I started investing, I actually wanted to put everything into nuclear technology stocks, but when I started without thinking, some doubts caught up with me. Absolute newcomer to investing, everyone advises me to buy something else, the field is still relatively unexplored.

After I had made my first purchases $CCO (-2,64 %) and $UEC (-3,24 %) (at the current high at the time) I became humble for the first time, after a short time around -25%.

On the WL were $BWXT (+0 %) and $LEU (-5,01 %) (bought here briefly and thought we were massively overvalued at 60 euros 🤣)

Fast forward, I preferred to bet on stable stocks, including dividend payers, and deviated from my gut feeling, as it already seemed a bit risky.

The nuclear sector has done incredibly well, even I didn't expect that and somehow I don't see an end at the moment.

I had planned this month/beginning of next month to finally get into $NXE (-0,06 %) and increased my position in $CCO (-2,64 %) to around 70 euros after the small correction. So far everything seemed fine, we have fallen. I wanted to increase my Cameco position in the range of approx. 65-70 euros and also enter Nexgen.

After my small regrouping in the portfolio, there was enough money left over to enter Nexgen "in time" and I collected my first 100 shares on October 24. The next day (I should have been happy) I was shocked when Cameco shot up and the 80b$ deal was done.....

The joy of my first share with +100% is definitely there, but I would have liked to buy a lot more, as I see much more potential.

Now I'm currently thinking about how the market will realign itself, you read more and more about the sector, more and more people think uranium is great and apparently we're only now moving up again? But wasn't that also the case at the beginning of '24? Back then I bought blindly, and shortly afterwards the sell-off came. The shares were "overvalued" and still outperformed.

Where are we now? To be honest, I wanted to add to the stock before the deal and see what happens during/after the Nuclear Exhibition in Paris from 04-06 Nov happens.

Since the prices have already run away, possibly also due to profit-taking, I will probably wait until the situation calms down and the exhibition is over.

For me, however, nothing has changed in principle, I won't be selling any more shares in CCO/NXE but rather adding to them. I'm still super bullish and won't let myself be influenced too much.

Why is $CCO (-2,64 %) an investment?

Absolute blue chip in the nuclear sector with solid figures
All-rounder - uranium is mined in its own high-yield mines and is also processed in a wide variety of ways
Shareholder in Westinghouse (service; maintenance)
Partnerships with Bruce Power & Nordion (Co-60 provision / Healthcare)
Moat (regulations, expertise, etc.)

When talking about a renaissance, Cameco cannot and should not be excluded. There are many long-term contracts in this industry, the manufacturer/producer can virtually choose its customers and call up prices. If you don't get nuclear fuel in time, you can't supply energy (predictable income).

The push is becoming more and more real, which country apart from Germany is NOT talking about an extension of operating times and new builds?

In 2023, the nuclear phase-out in Spain was still unchallenged, and there are currently plans to extend the Almaraz NPP, for example $IBE (+0,13 %)

The same is currently being discussed in the Netherlands; Borssele is to continue operating and also offer a site for new reactors.

In addition to Cameco, I have added Nexgen to my portfolio $NXE (-0,06 %)

Is in a good financial position (dilution will come)
Has promising projects
Management seems to know what is important
Unfortunately only a pure uranium supplier, should it come to production
(My thought, if it gets that far possibly interesting for a takeover see above)

I continue to find the sector super exciting and am looking forward to whatever may come, if prices remain high I will probably buy more anyway. Despite the "hype", I think there is still a lot of potential here, although the relatively high risk should also be kept in mind.

If something unforeseen happens here, the furnace can be out again immediately.

What do you think about this sector, do you think we are more than overvalued or is there still potential? I would be delighted to hear your thoughts on this.

Until then 🧐

Chris@Multibagger

I have a problem with $CCO at the current level. While researching the sector last week, I read that $CCO has sold out all uranium production for the next 3-4 years via long-term contracts. This means that there is hardly any room for positive surprises as the prices are fixed. The only thing that can develop better is the service business. As I tend to focus on small caps myself, I would now prefer other players. I therefore already have $UUUU, and also very speculatively $EL8. I also find $NXE interesting.

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Stocktective@Stocktective

@Multibagger Since you are more interested in the companies that are rising strongly in the short term, $CCO may not really seem attractive yes. You are also right about the long-term contracts, but I also think that there will be some trading capacity. The question of fuel is always the first to come up, be it because of an LTO or a new build project.
As we have seen with the 80b$ deal, people are slowly realizing how important and relevant service is. Every power plant is subjected to an annual inspection, recommissioning etc. This field is extremely broad. There are not many who do this and have the scope for it.
The nice thing about $CCO is that we don't just cover the production that the market is currently most interested in. Different areas and also other sectors that are not just for the supply of energy come into play.

$NXE I also think that's great, which is why I finally got on board. The individual NXE share in my secondary portfolio is already at a good 90% 😅
If we become profitable here, it will probably go up a few more 100%.

You also made me aware of $UUUU, but unfortunately I don't have enough money for everything. Let's see what happens next.

Especially in the nuclear sector, I hope that prices will soon "recover" to a lower level. Once the current hype cools down again and investors are perhaps more likely to get out again as the problems, longer lifetimes and costs become clear and could cause unrest.

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Tycon@Tycon

I am invested in $UEC. At that time I also got in at the ath at €6 but then reduced my investment during the crash. So I was lucky that it has now shot up so high. However, I believe and hope that UEC will play a major role in the nuclear fuel sector in the next few years. :) But let's see what happens...

@Tycon I also considered getting back into $UEC for a long time. But firstly, the lack of money and secondly, I don't really like the management here.
The €6 was easily taken out and I think it can go much higher here too.

@Stocktective Yes, it is also very risky - I haven't realized anything yet. And I'm in with an entry of €5. A lot depends on the US government, the permits and the uranium price. In the long term, however, it should go further in my opinion... I also find $UUUU very interesting at the moment, but I'm not that well informed and find everything very difficult to assess due to the AI boom:)

@Tycon I think $UEC is pretty well positioned and also not only active in the pure mining business, if they follow through with their line it should end profitably in the current environment.
$UUUU I haven't taken a closer look yet, I'm currently only getting the jumps because of WL 😅

It is pronounced Nu-cu-lar