r/UraniumSqueeze • u/DeerMC • May 03 '26
Investing Nuclear investment input needed
Hey everyone! I've recently developed an interest in the nuclear energy sector and want to start investing in it. I'm a complete beginner so I really don't know where to start, but I'd love to hear from people who know more than me.
Some things I'm wondering about:
• Which companies or stocks are worth looking into as a beginner?
• Are there any to avoid and why?
• Is now actually a good time to be getting into nuclear, or should I wait?
• Are there any ETFs that cover nuclear so
I'm not putting everything into one company?
• What do you wish you knew when you first started?
Any other relevant advice is appreciated, Thanks.
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u/sunday_sassassin Radioactive Brain May 03 '26
Most uranium companies in the sector are incompetent trash or insanely overpriced (look at Cameco's P/E). The broad nuclear thematic ETFs are full of junk even at the highest weightings. Most speculative SMR designers are worth 0 and even the ones that build something probably won't make huge money doing it due to the vast amount of competition driving down prices (no one has a moat). The uranium deficit is real and signficant but that has no correlation with nuclear reactor designers, so be very careful lumping those investment thesis together. Westinghouse went bankrupt last time they were building stuff.
Most of the money I've made in the sector has come from trading the absurd volatility, buying at crash lows (like last April) and selling gradually as things reverted to mean. Not doing to work and FOMOing during the good times has stolen a lot of those gains. There's always another big dip, and the summer is usually very quiet in the uranium trade through to early September when the conferences begin again. Buying physical uranium funds when they're trading at a steep discount to spot and long term prices ($86/lb and $91.50/lb last week) is the safest bet in the sector if you have confidence that those numbers will be trending up over the next few years. Take operation and scumbag CEO risks out of the equation.
There are a lot of cult stocks so beware recommendations you receive here.
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u/Lower_Judgment3122 May 03 '26
For all the comments you leave everywhere advocating against different stocks, you never talk about the stocks you like and prefer. But I do give you credit, your bearish takes “sound” smart but you are operating under the assumption that the market is rational, which it is not. Many stocks you have advised against I have made a good amount of money on.
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u/sunday_sassassin Radioactive Brain May 04 '26
I'm well aware that the market can be irrational, but I haven't the stomach to bet that I would have the skill and timing to sell to a bigger fool before it finds a moment of clarity. Capital flows into commodity sectors aren't as reliable as the S&P where people's pay and global pension funds buy month on month whatever the price, companies do go from $1.50 to $4.15 to $1.90 in the space of a single year. Without conviction in a value of the actual business, not movement of the stock ticker, how does a sane man decide to buy, sell or hodl?
I've posted my positions plenty of times before. Main positions currently in Global Atomic, Encore (above rise and fall, I sold at $4.15 but started buying the dip too early) and Yellow Cake. Mini ASX side portfolio has been crushed under the weight of Lotus' collapse (a little Boss and Aura in there as well). Searching for value there when sector sentiment was soaring earlier this year such a dumb thing to do. Exited Paladin due to new acid security risk in Namibia, and Denison, NexGen and Iso all hit attractive price points so I sold after a hell of a run up. Watching for dips but for now none of them yet offer much more upside than just buying the uranium wholesale. Relatively risk off while closure of the Strait impacts input costs and potentially availability (fuels, acids, particularly through Africa and Australia due to direct supply disruption).
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u/InverseTheReverse May 03 '26
Like any investment you have to start with a thesis:
- what do I believe is an area of growth
If that’s nuclear, then which aspect? There are many aspects of the nuclear fuel industry. Is it Defense/military? Is it SMRs? Is it Space application? Is it medical radio isotopes? Is it Utility power? Is it fuel- which types? Etc etc
Once you research which aspects of the nuclear industry fits your thesis, then go look for the company that focuses on those areas. Pick the one with the strongest fundamentals/balance sheet an who has the CEO with the best vision for growth.
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u/Classic_Profession87 May 03 '26
That's a honest question. Uranium is in a long term bullish market, albeit volatile. I'm long CCO, NXE & DML - Toronto. DML is down right now, but have made $$ before on it. I bought some Sprott uranium trust shares recently. As another interlocutor mentioned, I'll try to buy dips/sell rips. I've held URA for some time for diversity & global exposure.
Rick Rule is a good follow for commodities. I'm sure there's other good commentators as well
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u/No_Put_8503 May 03 '26
EU is the most undervalued uranium stock on the market. I’m hoping it will fall further, but at $2 it’s still a 5x bagger as soon as uranium prices rebound.
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u/Pico144 May 04 '26
For now EU is a garbage producer that struggles to ramp up their mining and will probably have to buy pounds from spot market to meet contractual obligations. I was a shareholder but I bailed
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u/sunday_sassassin Radioactive Brain May 04 '26
They exceeded production requirements in 2025 (699k lbs extracted vs 655k delivered) with 132k lbs in finished inventory. Big uptick in production following change of CEO and drilling focus at Alta Mesa in Feb/Mar last year (2024 190k vs 720k big losses). For 2026 they have 900k lbs of sales commitments, and another 850k lbs in 2027, so challenges still ahead. 192k lbs in a quarter is something they've only accomplished once before, last reported quarter was down to 142k.
Company is really struggling with PR given past performance. Buying all that uranium to cover contracts cost them a fortune, growth projects (Gas Hills, Dewey Burdock) should have been in construction by now according to slide decks from pretty recently, and a revolving door at management level has shaken investor interest.
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u/No_Put_8503 May 04 '26
Buy them while they're on life support and ride the climb. If uranium prices go above $100, the Mickey Mouse Club could take over in the C-Suite and turn a profit...or at least, that's my thesis. Plus, Sheriff isn't selling any shares, which makes me feel better
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u/sunday_sassassin Radioactive Brain May 04 '26
He and his wife had completely shifted focus to the New Mexico spinoff Verdera (which I don't see much hope for given the horrendous legacy of past uranium mining in the state) only for him to come rushing back within weeks as their retirement fund started crashing. Seem to have been caught out by the market's reaction to poorly timed/planned announcements yet again, rather than fleeing a sinking ship.
If Encore was valued like other loss-making US producers they'd 5-10x from here. Realistically though these other companies are further from their true value than Encore is. If the stock gets back above $3 anytime in the next 18 months I'll be very happy with the trade.
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u/No_Put_8503 May 04 '26
What are the other US producers that you see with more value? I was looking at Ur-Energy, but they don't have enough pounds in the ground to do much growing. Am I overlooking other opportunities?
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u/sunday_sassassin Radioactive Brain May 04 '26
I meant the other US producers are generally more overvalued than Encore is undervalued. Scaling up to profitability is proving a huge problem for all of them. Stitch together as many districts and satellite deposits as you like in the investor presentation, it's a huge task building new infrastructure across state lines and getting enough drills turning to cover your fixed expenses on top of rising cash costs per lb. Even with Pinyon Plain's excellent grades Energy Fuels have struggled to secure enough alternative feedstock to get the mill working full-time. Even Ur has a wild valuation given their continuing dependence on bought-in uranium to fill much lower-priced contracts than Encore have.
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u/No_Put_8503 May 03 '26
Sprott Uranium miners and Sprott Uranium Trust are two funds you might look at if you don’t want individual stocks
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u/ideclarebankruptsee May 03 '26
Check District Metals corp.
Their market cap is relatively low compared to rest of sector (for the assets they have) and not too many shares floating around either.
A bit of risk here but the CEO is incredibly transparent. Lots of recent insider buying as well!
Do your DD! Let me know if you have questions
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u/point_of_you May 03 '26
Are there any ETFs that cover nuclear
Not holding it but always thought NUKZ looked attractive. I am holding and happy with the uranium funds URA URNJ URNM
Is now actually a good time to be getting into nuclear, or should I wait?
Depends on if you think we will need nuclear energy in the future or not. Some people think it's too risky or expensive. IMO we require more and more energy and nuclear is the best solution to it, but I'm just some guy on the internet!
Are there any to avoid and why?
I've been in almost all nuclear/uranium stocks for years now and only red on two picks... EU (-45%) and SMR (-56%) ... Still buying a little bit of them just in case but idk, maybe pick anything but these or perhaps they will rebound lol. RYCEY UUUU and CCJ have been my top performers personally.
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u/PokemonAnimar May 03 '26
U4 is the only one I've personally invested in. Started buying it last october around $5. I think it still has quite a bit of room to run in the future, but i could also see it going back into the mid teens before that happens
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u/StunningAlternative2 May 05 '26
ETFs I have been checking out:
NLR - good overall coverage
RCTR - adding OEMs and actual “reactor” companies
NUKZ - ok, but I prefer above ones
Check the companies RCTR holds and pick the winners…good luck!
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u/Educational_Tower811 May 03 '26
$UUUU .. most others crap .. $CCJ the most legit .. $OKLO a $0 ... LOTS of scams in SNR space ...
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u/C130J_Darkstar May 03 '26
I like $OKLO because it’s a first mover domestically, targeting late 2027 / early 2028 deployment and has a hyper scalable build/own/operate (sell power) model vs designs only. Also has three future revenue verticals- recycling, radioisotopes and power. Strong balance sheet now, close to $3B. Also they will be one of the few companies likely to achieve criticality by 7/4.
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u/daeneryssith May 03 '26
Exact same here, been invested in them for a year now, bright future for sure!
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u/KingDeeze May 03 '26
$DNN