Ausbiz – Why you should invest in the uranium sector in 2024
In my recent interview with Ausbiz, I discussed the surging appeal of uranium given global decarbonisation efforts. Is there an investment opportunity here for 2024? Learn more on the shift in focus to the U.S. and Canada due to their stable uranium production, in a hope of reducing the dependency on Russia and other countries. Watch the full interview here: Why you should invest in the uranium sector in 2024
Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Edward
:
Although I know it comes at a risk with government concerns, can I ask your opinion on investing in coal stocks. in particular two stocks whc and yal, there prices seem attractive or is this a trap? Love reading the blog every week btw love the insights :)
David Buckland
:
Like all commodity stocks, Whitehaven Coal (WHC) and Yancoal Australia (YAL) earnings and cashflow will perform with the outlook for the coal price – both good and bad. Intuitively, as Asia particularly grows out its middle class and goes up the “economic food chain”, these businesses should enjoy a solid tailwind, assuming our regulators do not increase their involvement. While it is impossible to forecast their P/E rating (which goes up and down based on fashion/fad/excitement; or lack thereof), it seems reasonable both companies should produce good cashflow, possibly rewarding shareholders via dividends. The current very low P/E rating for these businesses reflects the lack of interest in coal companies from ESG oriented investors; however, many investors typically receive 80 per cent of their electricity from fossil fuels!