The Stockpickr Guide to Uranium

The uranium market has been on fire over the past year. The spot price has risen from $20 to $113 since 2004. And now, with uranium futures available to trade on the Nymex starting today, the speculators will join in, as well as the uranium producers who are looking to hedge. It's important to take a look at the stocks that might be affected, and how.

On the April 13 broadcast of CNBC's "Mad Money," Jim Cramer said there are two plays that can take advantage of the fact that Wall Street had not yet priced in uranium's cost at over $100, and the expense of producing it at $50 per pound if you extract it from phosphate. Check them out at Cramer's Stealthy Uranium Plays.

Of the two, Cramer said he likes Mosaic Company(MOS Quote - Cramer on MOS - Stock Picks) better than CF Industries Holdings(CF Quote - Cramer on CF - Stock Picks).

"Mosaic is the largest producer of phosphate on earth," Cramer said. "Mosaic has got the phosphate, and phosphate has got the uranium."

On the down side, Barron's on April 17 wrote about how supply disruptions and dwindling inventories have severely hurt companies like Exelon(EXC Quote - Cramer on EXC - Stock Picks), which have to purchase uranium.

"Operators in regulated electricity markets probably will be allowed to recover the higher costs of uranium via higher rates for customers," Barron's wrote. "But nuclear operators in competitive markets, like Exelon, Entergy(ETR Quote - Cramer on ETR - Stock Picks), FPL Group(FPL Quote - Cramer on FPL - Stock Picks) and Dominion Resources(D Quote - Cramer on D - Stock Picks), will see higher fuel costs deplete profit margins."

For more of Barron's insight, go to Stockpickr's Who Will Get Hurt by Higher Uranium Costs? blog. Scroll down the right to see the "Hate list," stocks that are negatively being affected.

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