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Three Glowing Uranium Stocks

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In the face of fluctuating energy prices and changing regulation, going nuclear may be a good strategy.

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It is estimated to rebuild pipelines, you need to spend over $2 trillion, so that's a lot of money to be made. Not only that, a lot of, since North American gas prices are very cheap, I would say in the tanker and shipping industry there will be a lot of money to be made.

One stock I like is GasLog (NYSE:GLOG). It just recently IPO'd. Their shipping costs are well below the average of LNG tankers, liquefied natural gas. In the fourth quarter, it's paying an 11 cents per share dividend, an initial dividend, and their ships are very young and have the latest technology. Their ships are much younger than the average tanker company.

They have a lot of routes to Asia and Europe, where unlike oil, natural gases prices are very localized, like in the Japan and Asia area, because they shut down a lot of their nuclear power plants. Natural gas there is around $17 per [million BTUs], and in parts of Europe it's $8 per mBTU.

As you can see, the natural gas revolution in the US is purely localized, where the natural gas price now is $2 per mBTU. I see a lot of money to be made, because it's one thing the US produces, and it's one of the top producers.

Kate Stalter: Any other names that some of our listeners might want to do some research into?

John Manfreda: I would say Cheniere Energy (NYSEAMEX:LNG). They have the Sabine Pass terminal. That is, I would say, that is going to be a good stock. That is the first export terminal to come out online. It comes out in 2015.

There is LNG and then there is the Cheniere Energy MLP (NYSEAMEX:CQP). I haven't looked at their MLP much, but that is another stock that I think will do well.

Kate Stalter: A moment ago, you mentioned in passing uranium, and for US audiences, that's not something we hear a whole lot about. Ever since the Japan earthquake, uranium and nuclear power have really been off the table in the US in any serious way. Tell us what you're seeing in that market.

John Manfreda: Oh, I'm actually a big uranium bull for numerous reasons. Actually, I believe one or two uranium plants have been approved in the state of Georgia. This is the first time this has happened in the US, I think, since either the early '70s or the '60s. Nuclear power is slowly being rebuilt here in the US.

Saudi Arabia is building 16 new power plants, which is unusual because I think they're at peak production levels. But you know, that's the land of oil, and now they're investing in nuclear power. Jordan is investing in nuclear power because they don't want to be dependent upon their neighbors for energy. The United Arab Emirates, they actually signed a free trade deal to import uranium from Australia. So, you see, in the Middle East, in the land of oil, they're invested heavily in nuclear.
No positions in stocks mentioned.
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