The company expects gross proceeds of about $20 million and has offered its underwriter, Dundee Securities Ltd., a 30-day over-allotment option of 834,000 shares. UEC says it will use the net proceeds from the offer “to fund exploration and development expenditures at the Company’s projects and for general corporate and working capital purposes.”

The company’s shares are trading down -8.8% at $3.52 in a 52-week range of $2.20-$4.44.

The unofficial closing bells put the DJIA up more than 52 points to 12,150.13 (0.43%), the NASDAQ fell more than 6 points (-0.23%) to 2,649.56, and the S&P 500 rose 0.11% or nearly 5 points to 1,258.47.

There were several analyst upgrades and downgrades today, including Altria Group Inc. (NYSE: MO) started as ‘buy’ at Deutsche Bank. Other ratings action include Verizon Communications Inc. (NYSE: VZ) reiterated as ‘buy’ with a $44 price target at Argus; Tesoro Corp. (NYSE: TSO) cut from ‘outperform’ to ‘neutral’ with a $34 price target at Credit Suisse; LinkedIn Corp. (NASDAQ: LNKD) raised to ‘overweight’ at JPMorgan; and General Electric Co. (NYSE: GE) raised to ‘outperform’ by Berstein.

Here are today’s post-earnings news reactions with prices during the last half-hour of trading: Chesapeake Granite Wash Trust (NYSE: CHKR) is up 0.7% at $19.94; Blyth, Inc. (NYSE: BTH) is down -0.05% at $66.33; Pep Boys-Manny, Joe, and Jack (NYSE: PBY) is down -5.5% at $11.21; Uranium Energy Corp. (AMEX: UEC) is up 0.66% at $3.06; AutoZone Inc. (NYSE: AZO) is down -0.12% at $338.56; Darden Restaurants Inc. (NYSE: DRI) is down -12% at $41.95; Toll Brothers Inc. (NYSE: TOL) is up nearly 3% at $21.37; and Liquidity Services Inc. (NASDAQ: LQDT) is up nearly 5.5% at $36.74, after posting a new 52-week high of $37.05 earlier in the day. Earnings releases coming after markets close today include Diamond Foods Inc. (NASDAQ: DMND); SAIC Inc. (NYSE: SAI); and Vera Bradley Inc. (NYSE: VRA).

Several other standouts from today are as follows…

Frontline Ltd. (NYSE: FRO) is up more than 19%, to $4.23. The oil tanker company has been suffering from low day rates and lack of cargoes, but today’s injection of $500 million from a Norwegian bank controlled by the company’s major shareholder, John Fredriksen, has pumped up interest in the stock.

Cell Therapeutics, Inc. (NASDAQ: CTIC) is up 14%, at $1.31. The drug-maker received notice from the FDA that its new drug application for a treatment for non-Hodgkins lymphoma is complete.

Comstock Resources Inc. (NYSE: CRK) is up nearly 15%, at $19.39. The oil & gas E&P company has acquired new acreage in the Delaware Basin of west Texas and reported that it had drilled five new producing wells in its Eagle Ford shale acreage.

Vonage Holdings Corp. (NYSE: VG) is down nearly -5%, at $2.52. The VoIP provider did not report any significant news, but the stock has been quite volatile over the past month.

Hecla Mining Co. (NYSE: HL) is up more than 9%, at $6.57. The miner benefited from today’s investors’ interest in gold mining stocks.

Stay tuned for Wednesday. We have noted Federal Reserve Governor Sarah Bloom Raskin moderating a panel on grass-roots participation at Baltimore branch of Richmond Fed. Here are other noteworthy events scheduled for Tuesday (all times Eastern):

• 7:00 a.m. – Mortgage Bankers Association purchase applications
• 10:30 a.m. – EIA weekly petroleum status report
• 3:00 p.m. – Report on outstanding consumer credit

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Paul Ausick

The unofficial closing bells put the DJIA up more than 78points to 12,097.83 (0.65%), the NASDAQ rose nearly 29 points (1.10%) to 2,655.76, and the S&P 500 rose 1.03% or nearly 13 points to 1,257.08.

There were several analyst upgrades and downgrades today, including Alcoa, Inc. (NYSE: AA) cut to ‘buy’ from ‘hold’at Goldman Sachs. Other ratings action include Chicago Bridge & Iron Co. (NYSE: CBI) removed from ‘Conviction Buy List’ at Goldman Sachs, but maintained at ‘buy’; Autodesk Inc. (NASDAQ: ADSK) cut to ‘sell’ from ‘neutral’ at Goldman Sachs; Cablevision Systems Corp. (NYSE: CVC) cut to from ‘outperform’ to ‘market perform’ at Wells Fargo; and Time Warner Cable Inc. (NYSE: TWC) raised to ‘outperform’ from ‘market perform’ at Wells Fargo. We include Cablevision and Time Warner in our story today about tomorrow’s release of new software for the Xbox from Microsoft Corp. (NASDAQ: MSFT).

Here are today’s post-earnings news reactions with prices during the last half-hour of trading: Dollar General Corp. (NYSE: DG) is up more than 1.6% at $40.59, after posting a new 52-week high earlier today of $41.25; and Hi-Tech Pharmacal Co. Inc. (NASDAQ: HITK) is down more than -9% at $38.75, after posting a new 52-week high this morning of $44.58. Earnings releases have slowed significantly this month, but there are some noteworthy reports coming after markets close today: Chesapeake Granite Wash Trust (NYSE: CHKR), Blyth, Inc. (NYSE: BTH), Pep Boys-Manny, Joe, and Jack (NYSE: PBY), and Uranium Energy Corp. (AMEX: UEC).

Several other standouts from today are as follows…

SuccessFactors, Inc. (NASDAQ: SFSF) is up more than 51%, at $39.71. The cloud-based software maker is being acquired by SAP AG (NYSE: SAP) for about $3.4 billion ($40/share). We have more coverage on this story here.

Athersys, Inc. (NASDAQ: ATHX) is up more than 27%, at $2.11. The stem-cell research firm, which uses adult cells not embryonic cells, is apparently back in favor after falling to a 52-week low of $1.00 just over two weeks ago.

Taleo Corp. (NASDAQ: TLEO) is up more than 21%, at $39.99, after posting a new 52-week high of $41.23. Another cloud-based solution supplier, Taleo is one of a number of cloud developer stocks jumping today on the halo effect from SAP’s acquisition of SuccessFactors.

Tenet Healthcare Corp. (NYSE: THC) is up more than 11%, at $4.66. The health care facilities operator fell more than -10% on Friday, when investors over-reacted to some downgrades in the entire sector; today’s gains are just a reaction to last week’s over-reaction.

Recovery Energy, Inc. (NASDAQ: RECV) is up more than 22%, at $5.34. This small oil & gas E&P holds 137,000 net acres in the Denver-Julesberg basin in northwestern Colorado, and began trading on the Nasdaq just about one month ago.

Stay tuned for Tuesday. We have noted Federal Reserve Governor Daniel Tarullo scheduled to testify before the Senate Banking Committee on the Dodd-Frank bill. Here are other noteworthy events scheduled for Tuesday (all times Eastern):

• 7:45 a.m. – International Council of Shopping Centers/Goldman Sachs weekly sales report
• 8:55 a.m. – International Council of Shopping Centers Redbook

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Paul Ausick

The impact on uranium mining companies large and small could be dramatic if more countries follow Germany’s lead and reject nuclear generation completely. Even China has adopted a more ‘slow-go’ approach to nuclear generation. Mining companies include Cameco Corp. (NYSE: CCJ), Denison Mines Corp. (AMEX: DNN), Uranium Resources, Inc. (NASDAQ: URRE), Uranerz Energy Corp. (AMEX: URZ), Uranium Energy Corp. (AMEX: UEC), UR-Energy, Inc. and (AMEX: URG). USEC Inc. (NYSE: USU) processes uranium into a low-enriched form, and General Electric Co. (NYSE: GE) and Shaw Group, Inc. (NYSE: SHAW) are leading builders and servicers of nuclear power plants. France’s Areva (OTC: ARVCY), and Japan’s Toshiba Corp. (OTC: TOSBF) are also among the world’s leading builders of nuclear power plants but are excluded because comparable information for the companies is not available.

One interesting sideshow that could impact all the uranium miners is the current bidding war between Cameco and Rio Tinto plc (NYSE: RIO) for Canadian junior mining company Hathor Exploration Ltd. Hathor is expected to take the Rio Tinto offer, leaving Cameco to shop for other uranium assets, most likely among the small miners we’re looked at here.

All data from Yahoo! Finance and MarketWatch, and current price quotes were gathered just before noon today.

Cameco Corp. (NYSE: CCJ) has a median target price of $31.10 from 8 brokers. Shares are trading today at $20.34, for an implied gain of $10.76, or 53%. Cameco’s forward P/E is 14.97 and the company pays a dividend yield of 1.8%. The stock’s 52-week trading range is $16.68-$44.81, and at today’s price that’s about 22% above its 52-week low and 55% below the 52-week high. Cameco is the world’s largest uranium miner, and falling uranium prices have hit the company hard since prices hit a peak in January of around $72/pound. Uranium now sells for about $52/pound, a drop of -28%, and that drop has been exacerbated by lower demand. Falling demand and price have had even harsher impacts on the smaller uranium miners. At this time, Cameco does not expect the rest of the world to follow the Japanese and German governments’ restrictions on nuclear energy.

Denison Mines Corp. (AMEX: DNN) has a median target price of $2.21 from 7 brokers. Shares are trading today at $1.49, for an implied gain of $0.72, or 48%. Denison’s forward P/E is negative and the company does not pay a dividend. The stock’s 52-week trading range is $0.81-$4.52, and at today’s price that’s about 84% above its 52-week low and 67% below the 52-week high. Denison sold just 167,000 pounds of uranium in the third quarter, compared with 706,000 pounds in the same period a year ago. That cost the company nearly $3 million in revenues, and total revenues were less than half those of a year ago.

Uranium Resources, Inc. (NASDAQ: URRE) has a median target price of $5.00 from a single broker. Shares are trading today at $1.10, for an implied gain of $3.90, or 355%. Uranium Resources’ forward P/E is negative and the company does not pay a dividend. The stock’s 52-week trading range is $0.52-$3.98, and at today’s price that’s about 112% above its 52-week low and 72% below the 52-week high. The company reports earnings on Monday, but even the single broker with a target price can’t be bothered to offer estimated results for the company. The implied gains here are strictly fantasy.

Uranerz Energy Corp. (AMEX: URZ) has a median target price of $5.49 from 3 brokers. Shares are trading today at $2.04, for an implied gain of $3.45, or 169%. Uranerz’s forward P/E is 12.22 and the company does not pay a dividend. The stock’s 52-week trading range is $1.17-$5.93, and at today’s price that’s about 74% above its 52-week low and 66% below the 52-week high. Uranerz, like Uranium Resources, sports a stupendously high implied gain because it is so weak. These two might be prime candidates for the loser in the bidding war over Hathor.

Uranium Energy Corp. (AMEX: UEC) has a median target price of $4.98 from 6 brokers. Shares are trading today at $3.14, for an implied gain of $1.84, or 59%. Uranium Energy’s forward P/E is 2.78 and the company does not pay a dividend. The stock’s 52-week trading range is $2.20-$7.48, and at today’s price that’s about 43% above its 52-week low and 58% below the 52-week high. Uranium Energy just committed to pay about $85,000 in cash and about $940,000 in restricted stock at today’s price for a uranium mining project in Arizona. That sent the share price down slightly, which is probably less than should have happened.

UR-Energy, Inc. and (AMEX: URG) has a median target price of $2.37 from a single broker. Shares are trading today at $1.10, for an implied gain of $1.27, or 115%. UR-Energy’s forward P/E is negative and the company does not pay a dividend. The stock’s 52-week trading range is $0.75-$3.37, and at today’s price that’s about 47% above its 52-week low and 67% below the 52-week high. UR-Energy does not yet produce anything, as its Wyoming mine is still in development. The company has spent a total of about $116 million since 2004, and is looking to begin production in the second quarter of 2013. It’s anyone’s guess what the price of uranium will be then.

USEC Inc. (NYSE: USU) has a median target price of $3.38 from 2 brokers. Shares are trading today at $1.91, for an implied gain of $1.47, or 77%. USEC’s forward P/E is 10.11 and the company does not pay a dividend. The stock’s 52-week trading range is $1.17-$6.35, and at today’s price that’s about 63% above its 52-week low and 70% below the 52-week high. USEC mailed notices to its 450 centrifuge workers in late October informing them that the company may begin laying off workers in the first two weeks of November. When it released third-quarter earnings last week, the company posted a smaller-than-expected EPS loss, but missed revenues by a mile.

General Electric Co. (NYSE: GE) has a median target price of $20.00 from 14 brokers. Shares are trading today at $16.32, for an implied gain of $3.68, or 23%. GE’s forward P/E is 10.39 and the company pays a dividend yield of 3.7%. The stock’s 52-week trading range is $14.02-$21.65, and at today’s price that’s about 16% above its 52-week low and 25% below the 52-week high. GE doesn’t specify exactly what part of its revenues come from nuclear plants, but it maintains partnerships with Japan’s Hitachi and Toshiba for building and servicing nuclear plants around the world.

Shaw Group, Inc. (NYSE: SHAW) has a median target price of $27.00 from 13 brokers. Shares are trading today at $24.21, for an implied gain of $2.79, or 12%. Shaw’s forward P/E is 9.46 and the company does not pay a dividend. The stock’s 52-week trading range is $18.98-$41.62, and at today’s price that’s about 28% above its 52-week low and 42% below the 52-week high. Known primarily as a heavy construction company, Shaw owns a piece of Toshiba’s nuclear operations in both the US and the UK, as well as a 20% stake in Toshiba’s Westinghouse nuclear operations. The company is building  four nuclear units in the US and holds a services contract on four more new plants in China. For the fiscal year ended in October, Shaw’s nuclear work helped cover revenue shortfalls in coal plants.

Paul Ausick

Every US company involved in the nuclear fuel business is getting beaten up this morning. Uranium Resources, Inc. (NASDAQ: URRE) is down nearly -12% and Uranium Energy Corp. (AMEX: UEC) is down -4%. Ur-Energy Inc. (AMEX: URG) is off nearly -11% and Uranerz Energy Corp. (AMEX: URZ) is off nearly -5%. The disaster at Japan’s Fukushima Daiichi power plant following the March earthquake and tsunami has essentially killed investor enthusiasm for uranium stocks.

In USEC’s case, the federal government had delayed approval for a conditional loan guarantee for $2 billion to complete construction of its centrifuge project in Ohio. The US Department of Energy is seeking additional information before reaching a decision. USEC has told investors that unless the loan guarantee shows some signs of moving toward approval, the company may have to ultimately discontinue its operations. And a possible shutdown could happen within weeks, not months.

The federal government and the Obama administration re-iterated support for nuclear power shortly after the Japanese disaster, but both remain cautious about making any high visibility moves too soon. Especially moves that indicate on-going support for nuclear power development.

That’s why all the uranium stocks are getting a beating today. Investors have no reason to believe that federal support will be forthcoming for the nuclear industry in the US, and, like so many non-hydrocarbon-based energy projects, lack of federal government support equals the kiss of death.

The other uranium stocks are all miners, but if there is no support for new nuclear development, then the value of these stocks will drop as well. Aside from early comments supporting nuclear power, the US has been non-committal, whereas Germany and Italy have both indicated that no new nuclear plants will be built and, in Germany, existing plants will be closed over the next decade or so.

Just before noon USEC shares are trading down nearly -15%, at $2.04, having set a new low for the 52-week range of $2.03-$6.35. Uranium Resources shares are off -14%, at $1.11, within a 52-week range of $0.50-$3.98, while Uranium Energy shares have come back slightly to $2.94, off -2%, in a 52-week range of $2.40-$7.48. Ur-Energy shares are down -12%, at $1.32, in a 52-week range of $0.80-$3.37, and Uranerz shares are down nearly -7.5%, to $2.41, in a 52-week range of $1.10-$5.93.

The Global X Uranium ETF (NYSE: URA) holds assets in all these stocks and is off nearly -6% today, at $10.57, a new 52-week low with 52-week high of $22.42.

Paul Ausick

Following the disaster at Japan’s Fukushima Daiichi nuclear power plant, Germany shut down seven of its oldest nuclear power plants until they could be inspected. Now those plants, and the other 10 in Germany’s nuclear fleet will all shut down by 2022.

The impact on uranium stocks has been immediate and ugly. Uranium Energy Corp. (AMEX: UEC) shares are down nearly -6% this morning, to $3.11, within a 52-week range of $2.11-$7.48. Ur Energy Inc. (AMEX: URG) shares are off nearly -8%, to $1.66, in a 52-week range of $0.73-$3.37. Uranerz Energy Corp. (AMEX: URZ) shares are off -8.5%, to $3.12, in a 52-week range of $0.87-$5.93. Uranium Resources, Inc. (NASDAQ: URRE) is down more than -4%, to $1.86, in a 52-week range of $1.82-$3.98.

Other companies that could feel some pressure from Germany’s decision include General Electric Co. (NYSE: GE), Toshiba/Westinghouse, and France’s Areva SA (OTC: ARVCY).

Germany’s decision follows a similar decision last week by Switzerland’s government. It’s hard to determine what part of the decision is driven by political concerns, but Germany’s ruling political coalition has come under heavy attack for its pro-nuclear stance and recently has suffered some electoral defeats that have been attributed at least partly to the coalition’s tolerance for nuclear power.

Germany’s nuclear 17 plants generate about 23% of the country’s electricity, whereas Swiss nukes produce about 40% of that country’s electricity. The Germans plan to cut electricity consumption by 10% by 2020 and to double the share of renewable generation to 35% in the same period. Germany’s nuclear operators include RWE AG, E.ON AG, EnBW Energie B-W, and Sweden’s Vattenfall. None is likely to accept the new policy without a fight.

The Obama administration has reiterated its commitment to nuclear development and Japan has said that it would increase its investment in renewables, but would continue to rely on nukes for the immediate future.

News of Germany’s decision lit a fire under most solar PV stocks today, as expectations for more demand from Germany have surfaced. Solar PV maker JA Solar Holdings, Co., Ltd. (NASDAQ: JASO) shares are up almost 6.5%, to $6.03, in a 52-week range of $4.22-$10.24.  First Solar Inc. (NASDAQ: FSLR) shares are up about 2%, to $123.53, in a 52-week range of $100.19-$175.45. LDK Solar Co., Ltd. (NYSE: LDK) shares are up more than 7%, to $7.53, in a 52-week range of $4.97-$15.10. Suntech Power Holdings Col., Ltd. (NYSE: STP) shares are up more than 5%, to $8.47, in a 52-week range of $7.05-$11.41. Yingli Green Energy HOlding Co. Ltd. (NYSE: YGE) shares are up almost 6%, to $9.26, in a 52-week range of $8.20-$14.29. Trina Solar Ltd. (NYSE: TSL) shares are up nearly 4%, to $22.85, in a 52-week range of $15.09-$31.89. The Guggenheim Solar ETF (NYSE: TAN) is up more than 5%, to $7.45, in a 52-week range of $6.02-$9.34.

The boost to solar stocks follows a report last week from IMS Research predicting that European solar PV installations will “fall considerably in the next 3-5 years.”  The research was completed before either Switzerland or Germany announced their exit from nuclear generation. And IMS does not take at face value any government’s promises for increases in solar PV installations.

In Germany, the decision to eliminate nuclear generation should lead to an increase in solar PV installations by the country that once led the world in new solar capacity. But will the country re-adjust its feed-in tariffs upward again to attract investment? Or will it decide that with the elimination of nuclear power, new solar capacity will have to stand on its own regarding pricing? Or will the nukes be replaced by coal- or gas-fired generation?

Germany can probably afford to boost its incentives for solar PV back to near previous levels. It may be, though, that the government chooses to let solar PV generation stand on its own, calculating that lower consumption and falling panel prices will help even out prices. The country could also more rigidly apply carbon emissions limits and boost carbon pricing, making coal or gas more expensive.

From a policy perspective, Germany’s decision to give up nuclear power could be a real game changer. If the country can cost-effectively replace its nuclear generation with renewables, it might be that anything’s possible.

Paul Ausick

While it’s still too early to draw any firm conclusion, uranium miners are getting hit by fears that demand for uranium will fall. Coal miners and crude oil and natural gas producers could see a jump in demand, especially in the short term as Japan deals with restoring electricity without relying on the 33% it generates from nuclear sources.

Uranium miners like BHP Billiton plc (NYSE: BHP), Rio Tinto plc (NYSE: RIO) and its majority-owned company Energy Resources of Australia, Cameco Corp. (NYSE: CCJ), and Denison Mines Corp. (NYSE: DNN) are taking the brunt of the market’s punishment so far today.

US miners with the word ‘uranium’ in their name are also getting a beating. Uranium Energy Corp. (AMEX: UEC), USEC Inc. (NYSE: USU), Uranium Resources Inc. (NASDAQ: URRE), UR-Energy Inc. (AMEX: URG), Uranerz Energy Corp. (AMEX: URZ), and the Global X Uranium ETF (NYSE: URA) are all down more than -15% in early trading.

Nuclear plant builders like General Electric Co. (NYSE: GE) and Shaw Group Inc. (NYSE: SHAW) are also feeling the squeeze.

Energy companies like Exxon Mobil Corp. (NYSE: XOM), Chevron Corp. (NYSE: CVX), and Royal Dutch Shell plc (NYSE: RDS-A) with substantial operations in Middle Eastern and Australian liquefied natural gas (LNG) projects are expected to see a rise in prices for natural gas as Japan imports more LNG to use for generating electricity.

Coal miners like BHP and Peabody Energy Co. (NYSE: BTU), again operating out of Australia, are expected to see increases in demand for thermal coal. Demand for metallurgical coal, used in steel-making, is also expected to increase once the extent of the damage in Japan is known and the country starts to rebuild.

Demand for crude in Japan could also rise if the country replaces some of its power generation capacity with oil. Crude prices have been falling slightly, probably due to the closing of several of Japan’s refineries. This is a temporary situation that should be resolved in a few weeks, after which crude prices could rise depending on the extent of extra demand from Japan.

Japanese demand for substitute fuels will be slow to start with, and then pick up as the country recovers. Prices for crude oil and natural gas will rise as this happens, but ordinarily the rise would be short-lived. How quickly, if ever, Japan restores its damaged nuclear plants is more a political matter than anything else.

That’s also the case in other countries that have nuclear programs in the works or in the planning stages. The uncertainty about the future of these programs will depress uranium stocks, particularly those companies, like Cameco and some of the smaller US uranium miners, that rely heavily on uranium for revenue.

Calls for a halt to nuclear power development will intensify over the next weeks and months, but they are unlikely to be heeded. More likely is that safety procedures will be reviewed and strengthened, and new projects will be more closely monitored while older ones might be more strictly reviewed when license renewals are being considered. But nuclear power generation is not going to disappear, and it would be a safe bet to say that over the longer term, nuclear generation will increase.

Paul Ausick

A variety of other uranium and nuclear-based companies have really outperformed USEC over the past 12 months. Uranium Resources, Inc. (NASDAQ: URRE), Ur Energy Inc. (NYSE: URG), Uranerz Energy Corp. (NYSE: URZ), and Uranium Energy Corp. (NYSE: UEC) have all posted share price gains of more than 50% in 2010. Uranium Resources’ shares gained about 300% in the past 12 months.

USEC is counting heavily on a $2 billion loan guarantee from the US Department of Energy for construction of its American Centrifuge Plant. Without the loan guarantee, USEC “will not continue spending on the project.” The company tentatively plans to spend $50 million in the first quarter of 2011.

The company’s fragmentary guidance for 2011 is pushing the share price down this morning. USEC said it expects 2011 revenue of $1.7 billion, well below previous analysts’ expectations of $2.01 billion. USEC expects a decline of 10% in sales and a “significant” decline in revenue related to decommissioning the gaseous diffusion enrichment plant at Portsmouth, Ohio.

USEC also did not offer guidance for earnings or cash flow from operations. The company did say, however, that “we expect to report a net loss for the year.” USEC expects gross profit in 2011 of $70-$80 million, and SG&A expenses of about $60 million. Add to that the anticipated expenditure of $50 million in the first quarter for the centrifuge plant, and the red ink really starts to flow.

It could be that USEC is just in the wrong part of the uranium/nuclear industry. Canadian miner Cameco Corp. (NYSE: CCJ) even posted a larger share price gain in the last 12 months than did USEC. Reactor builders like France’s Areva or GE Hitachi Nuclear Energy, a joint venture between Hitachi, Ltd. (NYSE: HIT) and General Electric Co. (NYSE: GE), are having far better luck cashing in on the new interest in nuclear power generation plants.

The Global X Uranium ETF (NYSE: URA) has also performed better in its short life than USEC, though 4.05% of URA’s holdings are USEC stock. URA’s largest holding is Cameco, which represents 17.57% of the ETF’s holdings, and its top four holdings, accounting for more than 50% of the ETF’s total assets, are miners. Digging uranium out of the ground or building nuclear generation plants is where the value is, not in enriching uranium fuel.

USEC’s shares are trading down nearly -7% at around noon today, at $5.23, within the stock’s 52-week range of $3.90-$6.50. Volume is about three times the daily average.

Paul Ausick

Cameco has boosted production and lowered costs while seeing prices rise. The best news, though, is this statement from the company’s earnings release: “We expect about one-third of our uranium sales will be delivered in the fourth quarter.”

The company also raised its guidance on production, from 21.5 million pounds to 22 million pounds for 2010. Capital expenditures were reduced from $510 million to $475 million. The company still expects to double production by 2018.

Uranium Resources has returned to compliance with NASDAQ listing rules requiring a $1.00/share minimum price, and signed a deal with Cameco for an exploratory property in south Texas. Cameco and Uranium Resources have also agreed on an option for a joint venture on the property.

Uranium Energy has just completed a private placement of more than 8.1 million units at a per share price of $3.40. Each unit includes one share of common stock plus “one-half of one transferable common stock purchase warrant (each a “Warrant”) of the Company, with each such whole Warrant being exercisable for one additional common share of the Company (each a “Warrant Share”) at an exercise price of $3.95 per Warrant Share for a period of one year from closing.”

The Global X Uranium ETF was launched last week at a per share price of around $16.58. Shares are trading up nearly 10% today at about $18.84.

Both Uranium Resources and Uranium Energy are up nearly 20% today, while Cameco shares are up more than 6%. All three stocks set a new 52-week high today as well.

Paul Ausick

The first installment of the investment will help USEC to continue its deployment of its American Centrifuge Plant which produces enriched uranium for use in nuclear power generation. The cash will also help support USEC’s $2 billion loan guarantee application with the US Department of Energy.

The not-so-good news for uranium companies was delivered to Uranium Energy Corp. (AMEX:UEC) and Denison Mines Corp. (AMEX:DNN). UEC faced a hearing in south Texas last week where it is fighting a request from county commissioners to overturn the company’s mining permits. According to the county, UEC failed to plug test holes with the required time and, as a result, the drinking water supply has been contaminated by stormwater runoff. The commissioners are also charging that the aquifer cannot be returned to its baseline condition.

The company says that the allegations are unsupported by data and that “you can’t restore the groundwater ion-for-ion.”

Denison has received a violation notice from the US Environmental Protection Agency, alleging that the company did not notify the agency that it had restarted operations at its facility near Fredonia, Arizona. The EPA also charged that the company failed to receive approval before testing emissions from the mine’s vents. The company says that it was “surprised” by the EPA’s action and that Denison had received an air quality permit from the state before proceeding with work. The EPA claims the state is not authorized to approve such work.

One almost certain outcome of the environmental disaster currently blackening the Gulf of Mexico is that federal regulators will take a harder line on enforcement of environmental regulations. Uranium miners are likely to be particularly hard hit because there isn’t a person in the US who doesn’t fear the consequences of radiation exposure. The statistical probabilities of environmental damage from radiation don’t matter.

UEC’s response to the county commission is dismissive, and Denison’s is disingenuous. Playing fast and loose with the environment is no longer a winning strategy.

Paul Ausick