Topic: How To Invest

Hi, Pat: I would like your opinion on Uranium Energy Corp. Thank you.

Article Excerpt

Uranium Energy Corp., $1.49, symbol UEC on New York (Shares outstanding: 91.7 million; Market cap: $136.7 million; www.uraniumenergy.com), is a U.S.-based uranium mining and exploration company. UEC owns the Palangana mine, the Goliad project (for which it holds the necessary permits to build a mine) and the development-stage Burke Hollow project, all in Texas. It also owns the Hobson processing facility—also in Texas—and exploration projects in Arizona, Colorado and Paraguay. Over the longer term, uranium companies like UEC will benefit from rising demand in China and India, where about 650 million people live without electricity. There are now 72 nuclear reactors under construction globally, mostly in those two countries. However, UEC’s near-term prospects are mixed, mainly because of the prospect of rising liquefied natural gas (LNG) exports to countries like Japan, China and South Korea, where gas sells at a big premium to North American prices. In North America, LNG has long been viewed as risky from an environmental and safety perspective, but the…