Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, June 3, 2011

Article Excerpt

CAMECO CORP., $27.56, symbol CCO on Toronto, dropped to as low as $26.61 this week after the German government announced that it plans to shut down all of its nuclear reactors by 2022. The stock has since recovered most of the loss. Germany’s decision is the result of anti-nuclear sentiment in the wake of the Japanese earthquake and tsunami, which damaged the Fukushima nuclear plant and allowed radiation to escape. As well, German Chancellor Angela Merkel’s centre-right Christian Democrats lost seats to the Green Party in recent state elections. Right now, nuclear reactors supply about a quarter of Germany’s electricity. It’s doubtful that Merkel can replace that production with wind and solar. The country is more likely to import more electricity from France, which relies on nuclear power for about 80% of its electricity generation. Either way, Germany only accounts for just 5% of global uranium consumption. Long-term global demand for nuclear power and uranium fuel appears intact. China and other emerging countries,…