Breaking A Bit On Nuclear

Look, between you and I, I think petroleum products are awesome, and don’t believe in man-made global warming. These two things, by themselves, are enough to qualify me as a “nuclear renaissance” skeptic. Especially with the rest of the planet starting to fall in lockstep with my “who gives a shit about polar bears?” mentality, before the Japan tsunami, I wouldn’t have been caught dead holding uranium fuel and parts suppliers.

After my 20%-in-three-days jamboree, I got cocky. But after they found Plutonium today, I decided to back off and take profits in UEC. Those profits had been reduced to about 7% gains on a 5% portfolio position.

Cava…

As you’ll recall, alpha emitting core material leaking was sort of a pet peeve of mine. The real limiting issue of nuclear power has always been cleaning up after it, not the time during which it runs itself. If Japan is suddenly looking at huge land reclamation issues, those will spill over. So, I guess what I’m saying is that if they were just finding radioactive iodine and shit…oh well. But, there was already some growth prospects baked into that cake, which are going to be pressured much harder if this Japan thing becomes more difficult to clean up.

I still think nuclear companies are way undervalued here, but I’m not willing to dedicate 10% of my position sizing towards an industry I was never that excited about to begin with. In slashing UEC, I’m back to a 5% position, completely dedicated to CCJ.

CCJ is a company I can get behind anyway. Their balance sheets are squeaky clean and highly elaborate. They go in depth both with finances as well as the state of operations. If you want to know how long one of their mining tunnels is, you can find out from their filing. I’m usually not big on Canadian companies, but if any one does well, it will be this miner. They radiate intelligence like their product radiates particles.