“Obama Officially Went Nuclear Benefiting The Nuclear ETF Obama officially went nuclear with his announcement of $8.8 billion in loan guarantees for Atlanta based Southern Company to build two nuclear power reactors. The President has been hinting he was moving in this direction since the early days of his campaign, and now he is putting his money where his mouth is, no doubt egged on by Energy Secretary Steven Chu. Furthermore, Obama has included more nuclear loan guarantees in his 2011 budget,” The Mad Hedge Fund Trader Reports From Business Insider.

He goes on to say, “The genie is clearly out of the bottle. The nuclear industry has been in hibernation since the accident at Three Mile Island in 1979. There is absolutely no way we can deal with our energy crunch without a huge expansion of our nuclear capacity, which sits at a lowly 20% of our power generation. France has already achieved 85%, followed by Sweden at 60% and Belgium at 54%. Unless you’re a nuclear engineer, you are probably unaware how far the technology has moved ahead in the last 30 years.”

“At least 30 new reactors are expected to start construction in the US over the next five years, and over 100 in China. There is a great equity play here, and I would use any substantial dip in the market to scale in.  The Market Vectors Nuclear Energy ETF (NLR), which has jumped an impressive 78% to $25 since March, is the easiest way in. You can also buy its largest components, like Cameco (CCJ), the world’s largest uranium producer, which saw its stock clock a nice double last year,” The Mad Hedge Fund Trader Reports.

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Here is a look at the Market Vectors Nuclear Energy ETF (NLR):

The investment (NLR) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the DAXglobal Nuclear Energy index. The fund normally invests at least 80% of total assets in equity securities of U.S. and foreign companies primarily engaged in the nuclear energy business, which derive at least 50% of their total revenues from nuclear energy business. Such companies may include small- and medium capitalization companies. It is nondiversified.

TOP 10 HOLDINGS ( 62.72% OF TOTAL ASSETS)

Company Symbol % Assets AREVA (CEI.PA) 4.36 Cameco Corp. (CCJ) 8.39 Constellation Energy Group, Inc (CEG) 8.22 Electricité de France N/A 8.07 Energy Resources of Australia Limited N/A 4.67 Exelon Corp. (EXC) 7.57 JGC Corp. N/A 4.29 Mitsubishi Heavy Industries, Ltd. N/A 7.83 PALADIN FPO (PDN.AX) 4.77 Uranium One Inc (UUU.TO) 4.55

 

 

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ETF BASIC NEWS, NLR