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Put Up Those Nukes
Jim Cramer is bullish on nuclear power, and he's bullish on Cameco ( CCJ), he said Wednesday on his "Mad Money" TV show. The U.S. may not be building any nuclear power plants, but there's a bull market in nuclear around the world, said Cramer. Uranium prices are up 56% in the last year, and Cameco is the world's largest producer of uranium with a 20% market share, he said. Even though Cameco's stock has had a big run this year, it is down about 10% from its 52-week high, said Cramer, who doesn't believe the run is over. Nuclear power might be the biggest story of the next decade, he said. Cramer is not a fan of nuclear-enrichment company USEC ( USU) even though its stock is near its 52-week low. Don't be tempted to buy the stock, he said. It is worst of breed. It is much better business to be a uranium supplier like Cameco than to be a uranium processor like USEC, he said. Cramer also looked at General Electric ( GE) as a possible play on nuclear power. But, GE's nuclear power plant construction business is too small a piece of the overall company, he said. The pure play is Cameco, said Cramer. Commenting on wind power, which is also in bull market mode, Cramer said that pure plays are totally elusive. United Technologies ( UTX) and GE both have wind-power businesses, but again, they are just small pieces of their overall businesses.
Beer sales in the U.S. may be going flat, said Cramer, but Japan's Kirin Brewery ( KNBWY) has a hot new product Cramer believes will send the stock higher. Kirin has developed a soybean-based beer that isn't subject to Japan's "malt tax," and the beer has turned out to be very popular, he said.