Email of the day
"With the earthquake and tsunami catastrophe in Japan it is very likely that safety around nuclear energy will increase. I have unsuccessfully been trying to think of any stock which could benefit. Does Fullermoney have any suggestions? Thank you.
Eoin Treacy's view Thank you for this interesting question
and we would welcome subscribers' thoughts on the subject. I'm not sure that
there are any clear winners in the nuclear sector following this accident but
here are some initial thoughts.
Areva is focused on just about every portion
of the uranium fuel cycle from mining to reprocessing and also focuses on safety
protocols. However, this latter aspect does not appear to be reflected in the
share price.
Jokwang Ili Co, listed in Korea produces
automatic safety relief valves for nuclear reactors but the share appears to
be highly cyclical and thinly traded.
Tacmina Corp, listed in Japan, produces
a range of pumps, some of which are used in nuclear reactors. The share has
rebounded well from last week's decline and has pushed back up into the overhead
range.
UK listed Atkins (WS) is primarily a transport
related consultancy but also has operations in the nuclear
industry. The share is currently rallying from the lower side of a first
step above its base and a sustained move below 650p would be required to question
potential for some additional upside.
US listed Shaw Group is probably the
most likely to benefit from increased safety concerns. It will be assisting
Toshiba "with
mitigation, remediation and recovery services" at the Fukushima nuclear
plant. The share fell to retest the lower side its yearlong range following
the accident but has bounced and would need to sustain a move below last week's
low, near $27.60, to question scope for some additional higher to lateral ranging