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NexGen Energy (NXE) is gaining attention for its large undeveloped uranium deposit and the potential growth in nuclear energy demand amidst rising energy needs from AI technology. However, the company remains pre-revenue, primarily funding operations through share dilution, leading to concerns over price stabilization before further investments. Experts suggest that while the outlook appears bright due to the urgency of nuclear solutions for energy demands, NXE's current lack of profitability and the world’s capacity for uranium production create uncertainty. High management compensation and capital allocation strategies also raise red flags for investors. Overall, while some see it as a solid long-term bet, caution is advised given the inherent risks and volatility.
Many nuclear power stocks benefited from the AI trade and expectations for increased energy demand for AI data centers, but the expected need for increased power may not be as big as expected, and investors are worried about the AI CAPEX cycle rolling over. NXE is a $3.8B company that is pre-revenue, and mostly funds its operations through share dilution. Like most stocks, NXE has fallen a lot over the past several months, and given the recent weak momentum, we would prefer to see some stabilization in its price before adding to the name, but we would be comfortable holding it here. Its future prospects look good, but it is not expected to be profitable for a few years, and so much of its price will be determined by expectations for future nuclear energy demand.
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Broken out to new highs. Benefits from falling interest rates, which should continue in Canada even if not in the US. Energy is a foundation of our economy, and as our economy grows we'd expect energy demand to grow as well. May have additional boost from newer sectors, like nuclear, growing more rapidly.
Largest undeveloped uranium deposit in the world. The bet is that the deposit is as good as test results say, and he thinks it is. Bullish on uranium. Real question is does the world need that much new uranium, or will we get a resolution for other global producers? Nuclear renaissance, contributing to increasing demand. Higher risk, since it doesn't produce either commodity or revenue yet.
Mine will probably get built. If you have the risk appetite, good entry point with the pullback. He owns CCO, bigger and actually producing.
Very strong demand for Uranium. Nuclear energy appears to be solution to long term power demands. Eastern European Uranium appears to be compromised. Great resource that has lots of opportunity. Management compensation very high, with questionable capital allocation at times. Would recommend a small position.
More of a a uranium developer with many large, undeveloped uranium deposits. They just got a permit in Saskatchewan to develop a mine there. The uranium market is growing tight; is a big uptick in electrical utility contracting for uranium to shore up supply. This mine will get built. Things look good, but the company is a little speculative and beyond his risk tolerance.
Is no cash flow, but they're sitting on two monster uranium deposits in Saskatchewan. He likes uranium. The Fukushima disaster is behind us and mindsets are embracing nuclear energy again. This is likely a take-out target given their deposits. It's too speculative for him. They aren't producing and lack cash flow. That said, you can study this to see if there is value, given those deposits.
NXE is a $2.7B company that is pre-revenue that operates in the exploration and development of uranium properties in Canada. It has a decent cash balance of $141.3M and an equity position of $481.9M. It does not generate free cash flow, and mostly issues shares and debt to fund its operations. It has performed well over the years, supported by a growing interest in nuclear energy. We like NXE as part of a play on nuclear energy, but would be mindful of its smaller size, that it is pre-revenue, and higher risks from the nuclear energy industry.
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NexGen Energy is a OTC stock, trading under the symbol NXE-T on the (). It is usually referred to as or NXE-T
In the last year, 3 stock analysts published opinions about NXE-T. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for NexGen Energy.
NexGen Energy was recommended as a Top Pick by on . Read the latest stock experts ratings for NexGen Energy.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
3 stock analysts on Stockchase covered NexGen Energy In the last year. It is a trending stock that is worth watching.
On , NexGen Energy (NXE-T) stock closed at a price of $.
Uranium stocks have been pulling back since November, before the market started to correct. Technically in the near term, they're all broken. Long-term picture is excellent. Don't add here, until you see something change for the better.