Uranium Energy Corp. (UEC) engages in the exploration and development of uranium projects in the United States.  The Company intends to enter production using state-of-the-art, efficient and cost-effective methods.  The Company is focused on its Goliad ISR Uranium Project in South Texas and is in the process of finalizing the mine permitting of the Goliad ISR Uranium Project for Production Area 1. 

Founded in 2003, the Company is headquartered in Austin, Texas.

Source: Reuters.com, SEC Filings.

Source: Reuters.com, SEC Filings.

Source: Reuters.com

Overview

UEC engages in the exploration and development of uranium projects in the United States.  The Company intends to enter production using state-of-the-art, efficient and cost-effective methods.  The Company is focused on its Goliad ISR Uranium Project in South Texas and is in the process of finalizing the mine permitting of the Goliad ISR Uranium Project for Production Area 1.

Market

Demand for uranium was driven by the defense industry in the United States and the USSR during the cold war, with both countries amassing nuclear warheads by the tens of thousands.  The subsequent fall of the USSR, nuclear weapons reductions treaties, the Three Mile Island scare, and the Chernobyl disaster created a massive drop in demand for uranium and a plunging price of the commodity to $6.50 per pound in the 1990s.

However, beginning in 2003, the price of uranium soared nearly 21 times in price to a record $136 per pound in June of 2007.  The price steadily dropped due to technically overbought conditions during the summer of 2007, and continued its sell-off following the Bear Sterns collapse and subsequent worldwide credit crisis.

In March of 2009, the price of uranium reached a multi-year low of $40, but since has rallied along with other commodities to reach $54 in June of 2009.  As of September 11, the price of uranium has since pulled back from the June high to trade at $45.

The “green” movement has influenced policymakers to look to nuclear energy as an alternative to burning fossil fuels.  But more importantly, the growing concerns surrounding evidence of peak oil production has substantially increased demand from China, which plans to build 30 nuclear facilities by 2020 in anticipation of short supplies of crude and other fossil fuels, worldwide. China is expected to allocate $50 billion to build its nuclear plants, with estimates that 40 gigawatts of electricity production will be available to facilitate its continued rapid economic growth.

The Iranian controversy, notwithstanding, the nations of the Middle East have announced their plans for nuclear power plants, as well.  Nations of the Gulf Cooperation Council have been negotiating with companies from the United States, France , Britain and Russia to build nuclear power facilities. Saudi Arabia, United Arab Emirates (UAE), Qatar, Morocco, Kuwait, Oman, Bahrain, Libya, Jordan, Egypt and Tunisia have all expressed interest in the development of nuclear power.  Because of security issues forwarded by Israel, some of these countries may have difficulty developing nuclear power sponsored by the West.  However, the Middle East region is expected to be a large source of growing demand for uranium.

Last year, Saudi Arabia and the UAE signed agreements for nuclear technology from the United States. France has signed cooperative agreements with the UAE, last May, and pledged to aid Morocco and Qatar in the pursuit of nuclear power programs of their own.

France opened its first military base in the UAE, and has aggressively lobbied to secure a $40 billion deal for as many as six nuclear reactors with the third-largest oil producer in the region.

Since 2003, the uranium sector has grown faster than any other mining sector, but has received little mainstream media attention.  This may change as escalating fossil fuels prices return to challenge all-time highs.

In the short-term, however, supply appears to be running ahead of demand.  The World Nuclear Association said supplies of uranium will exceed consumption by 3,012 metric tons next year, compared with a shortage supplies totaling 2,029 tons this year.  Many uranium analysts expect higher prices in the long-term from strong demand and struggling supplies.

Company News

On September 1, UEC announced that the Texas Commission on Environmental Quality has issued initial draft permits for two disposal wells at the Company’s Goliad ISR uranium project in South Texas.

Source: http://stockcharts.com/h-sc/ui?s=uec

UEC trades above its 13-day moving average. This bullish sign is significant because the moving average is also positively trending.

The MACD for UEC currently indicates a bullish signal.  The MACD is above the signal line, a 9-day moving average; and the MACD is also above the critical level of 0, which implies that the underlying moving averages are trending higher.  Overall, the graph is bullish.

Source: Thomson Financial

Data provided by Thomson Financial

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

• Need fast service and cheap rates from a broker? Buy stock online at my favorite brokerage
• See today’s top stock picks and market analysis
• Want more? Check out the message board buzz for these stocks
• See what newsletters are recommending these stock picks
• Get breaking news alerts on these stocks: http://thestockmarketwatch.com/
• This newsletter has been helping traders make a killing on these stocks. Click here for a 25% discount offer.

About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.