Wednesday, July 29, 2009

Uranium Shares Struggle in the Wake of USEC Loan Denial

Comment: Yeah! No to uranium mining!

By the tickerspy.com Staff
On Wednesday July 29, 2009, 12:25 pm EDT

Uranium stocks got hammered on Wednesday after the Department of Energy denied USEC's (NYSE: USU - News) request for $2 billion in loan guarantees.

Yesterday USEC expressed its disappointment in the Department of Energy's denial of its previously promised loan guarantee. Without the government support, private financing cannot be obtained according to the company. USEC's CEO, John K. Welch said, "President Obama promised to support the loan guarantee for the American Centrifuge Plant while he campaigned in Ohio. We are disappointed that campaign commitment has not been met." Investors share Welch's disappointment, as they are now down close to -40% in two days.

As a whole, the Uranium Stocks Index is down by -4.1% today. It is now lagging the S&P 500 over the last month by -15.7%.

All the Index's components are down by more than -2% today. Paladin Energy (OTC: PALAF - News) is leading the drop, down -7%.

Uranerz Energy (AMEX: URZ - News) and Toronto-based Denison Mines (AMEX: DNN - News) are down by -4% in the selloff.

Uranium Energy (AMEX: UEC - News) and Cameco (NYSE: CCJ - News) are top performers with losses of less than -3%. Cameco will report its earnings on August 12.

As of this writing the Uranium Stocks Index is the second-worst performing tickerspy Index over the last month, down -10.6%.

http://finance.yahoo.com/news/Uranium-Shares-Struggle-in-indie-2279813385.html/print?x=0

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