We offer to provide analysis of readers stocks or lists of stocks and this is much of what we did below. The request was to find uranium, nuclear or related stocks that have been discounted due to a reaction to the events in Japan. The list below is a collection of Mining Companies, Power Plant Builders and Suppliers and Steel Companies. Steel Companies seem to fit as far as they provide later staged material to manufacturing and in this case manufacturing has been destabilized due to the loss of capacity for an undetermined period in Japan. As with our last Analysis of 3/22/11, these companies vary in Market Cap and although some company may be in the same industry as another its competitive ability may not be the same.
Our regular readers will also notice two departures from our normal criteria for the companies we look at: 1) ETF and similar are analyzed & 2) non dividend paying stocks are included.
With the exceptions of URZ, BWC, UEC & NLR, every stock has a minimum 10 bps days earnings. These four stocks all have May expiration dates yet have Days Earnings between 5 and 9 bps!
This analysis was performed at the market close of March 23, 2011.
The VIX closed at 19.17.
The S&P 500 closed at 1,297.54.
Symbol Name
AA Alcoa Inc - Highest RVI's of today's "group" but best of the "Steel" makers - High Days Earning and SSR.
AKS AK Steel Holdings Corp - Ex-Date 3/29 - very low RVI's - both near date options provide Day's Earnings at 10 pbs.
BHP BHP Biliton Limited - High RVI's (in the 80's) - A stock we have liked for some time.
BWC The Bavcock & Wilson Company - NO DIVIDEND - Mid-High RVI's with Days Earnings at 5.9 bps for both near dates.
CCJ Cameco Corporation Common - 3/29 Dividend - #3 overall stock of the group with 18 bps days earnings - Low RVI's
FWTL Foster Wheeler AG. - NO DIVIDEND - #4 Overall stock due to high Day's Earnings - Traded RVI's are in the 70's -
MT Arcelor Mittal - Mid/low RVI's
NLR Market Vectors Uranium & Nuclear Energy ETF - - NO DIVIDEND - ETF - RVI's are mid/high in the high 70's - This general market index does not really support the belief that nuclear and related stocks got "CRUSHED" - The ETF was trading in the mid 25's prior to the Earthquake, fell to 20 post Quake and has rallied. Its 52 week high was mid-Feb at $27.78. Description: "The investment seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal Nuclear Energy index. The fund normally invests at least 80% of total assets in equity securities of U.S. and foreign companies primarily engaged in the nuclear energy business, which derive at least 50% of their total revenues from nuclear energy business. Such companies may include small- and medium capitalization companies. It is non-diversified."
NUE Nuroc Corporation - 3/29 Div - Mid/High RVI's - The dividend is captured in all scenario's. The call shown in the near date is 6¢ in the money. It was the most beneficial based on the numbers but not for those looking for upsidae.
UEC Uranium Energy Corp - - NO DIVIDEND - Mid/Low RVI's - as expected with a May expiration, the Day's Earnings are low (#11 for the list) while the SSR is high (#3 for the list).
URA Global X Uranium ETF - - NO DIVIDEND - #2 Overall with low RVI's - As opposed to NLR, URA does exhibit the post Quake/Catastrophe depression. URA peaked mid-Feb at $33.42 then dove to $12.5 post incident. The 20% recovery still has not brought it back and it "looks" attractive - It remains 20% below - DO OUR HOMEWORK ON THIS ONE. Description: "The investment seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Uranium Index. The fund normally invests at least 80% of total assets in the securities of the Underlying index and in depositary receipts based on the securities in the Underlying index. It uses a replication strategy. The Underlying index is free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure broad based equity market performance of global companies primarily involved in the uranium industry. The fund is non-diversified." "The Solactive Global Uranium Total Return Index tracks the price movements in shares of companies which are active in the Uranium mining industry. The Index is calculated as an total return index and published in USD. The composition of the Index is ordinarily adjusted twice a year.
Solactive Global Uranium Total Return Index
URRE Uranium Resources, Inc - NO DIVIDEND - Mid RVI's - #1 of overall list - 19.6 bps Days Earnings and a 4.4% SSR - Note that the May Expri's have a 19.4 bps and a 11.26% SSR! This is a "CRUSHED' stock - the market cap is $207 million - As always, do your research carefully, and understand the risk on this one.
URZ Uranerz Energy Corp - NO DIVIDEND - Mid/high RVI's - Again a stock we advise looking at carefully. This is a "CRUSHED' stock - the market cap is $227 million - As always, do your research carefully, and understand the risk on this one.
*Note: the tables shown are embedded .jpg files. This means that you can: 1) double left click them with your mouse to enlarge them, or 2) right click them with your mouse and choose to open them in a new window or tab, print, save, etc.
As with everything we post, we may or may not have the stock and/or strategy in place in any one of our portfolios or may add it at any time. We do not make any buy or sell recommendations. We provide basic analytical research, some short commentary of the results and encourage you to do your own thorough due diligence prior to any purchase or sale.
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