CAMECO Stock Price – What Factors Affecting It?

CAMECO Stock Price

The CAMECO stock price dropped in the last few months, but this has started to reverse and the stock has seen the price start to come back. What factors have an affect on this price? One of the biggest is a factor that is affecting all uranium stocks, and that is the partial nuclear meltdown at the reactor in Japan following the earthquake and tsunami. CAMECO stock price dropped some immediately after this event, because of all the concerns about nuclear plants in general and a discussion on whether to continue with plans to build new nuclear power plants. Another concern was that with one plant shut down the demand for uranium would lessen some.

Unlike many high yield energy stocks the stock of companies that mine or produce uranium tend to be more stable. This is also true of the CAMECO stock price, and even the recent market disruptions and concerns did not lower the price of this quality choice much. Most uranium produced is typically committed, because of the long life of nuclear plants and the need for fuel that these plants have. Green energy stocks are not affected by any nuclear disasters in a negative way, but all stocks in uranium feel the effects of these events.

One factor instrumental in the increase and rebound of the CAMECO stock price is that the disabled plant constitutes less than two percent of the market for uranium, so there is not a big impact on the supply and demand with this material. The number of uranium mining companies is limited, which puts CAMECO in a nice position as far as investors are concerned. This is true even after the price fluctuations that the stock has recently seen. There are other factors involved in this stock price as well, such as the company reputation and financial statements among others.