Buy Uranium Miners and Short Solar stocks? - opinions?

C

cashonly

Bright Trading, LLC
So, it looks like the uranium miners are taking a HUGE hit. I would think that this much of a hit is an overreaction. Yes, there are plants being closed due to the Japan situation, but this is not something sustainable.

If countries keep them closed for long, there will be a huge runup in the "immediate" alternative energy fuels, primarily coal and nat gas. But once things calm down, the nuclear plants will ramp up again and uranium demand will return to normal. Based on that< i think that Uranium miners may have a potential as a long play.

And for solar stocks, they're getting a big boost out of the Japan situation as well, but not as big as the hit the uranium stocks are taking. However, they've been getting a lift from rising oil, so they're already up a lot. It seems like this boost would be a spike also based on overreaction to the Japan situation.

Oil prices have gone down since the earthquake, so that buoyancy for solar stocks is eroding. And due to less manufacturing in Japan and therefore, less manufacturing from other countries that use essential parts from those closed or reduced output japan plants, it seems that production and oil would be reduced, or at least not increased.

Thus, what's your opinion on long nuclear companies:
DNN, UEC, URRE, URG, URZ
and short solar stocks:
LDK, CSIQ, ESLR, FSLR, JASO, TSL

Thoughts or opinions on this?
 
Quote from cashonly:

So, it looks like the uranium miners are taking a HUGE hit. I would think that this much of a hit is an overreaction. Yes, there are plants being closed due to the Japan situation, but this is not something sustainable.

If countries keep them closed for long, there will be a huge runup in the "immediate" alternative energy fuels, primarily coal and nat gas. But once things calm down, the nuclear plants will ramp up again and uranium demand will return to normal. Based on that< i think that Uranium miners may have a potential as a long play.

And for solar stocks, they're getting a big boost out of the Japan situation as well, but not as big as the hit the uranium stocks are taking. However, they've been getting a lift from rising oil, so they're already up a lot. It seems like this boost would be a spike also based on overreaction to the Japan situation.

Oil prices have gone down since the earthquake, so that buoyancy for solar stocks is eroding. And due to less manufacturing in Japan and therefore, less manufacturing from other countries that use essential parts from those closed or reduced output japan plants, it seems that production and oil would be reduced, or at least not increased.

Thus, what's your opinion on long nuclear companies:
DNN, UEC, URRE, URG, URZ
and short solar stocks:
LDK, CSIQ, ESLR, FSLR, JASO, TSL

Thoughts or opinions on this?
More...

things may calm down in 5 years. And definitely not sooner than in 1-2years. So it will be plenty of time to buy

by the way all those stocks are far above from their 52 wk lows

I would buy a very small position when they are at least 30-50% below their current 52 wk lows
 
taking the opposite side of that trade and retiring to a non-nuclear island somewhere. thanks.

it's way too soon to start thinking contrarian on that move. and in reality, there may never be a good time to buy nuke again.
 
bunch of solar is up today.
esp with nuclear energy being
so dangerous....ppl will start
looking into alt energy and hopefully
go green!
 
Not shorting solar but the pullback in uranium is a nice buying opportunity. Not today but in the short term I'm looking to put some capital into it.
 
Got long UEC, DNN and URZ on march 14 after the open. Small blood so far. Did not really like the comment from Merkel, just a reminder that the markets are not rational.
 
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