But uranium looks like it has much more room to run over the long haul as demand will keep rising. In a recent report, Morgan Stanley's analysts noted that 147 new nuclear power plants will be built over the next decade. That figure rises to 330 if you account for all of the proposed but yet-to-be-approved plants. China leads the way with 159 proposed plants, while India (60), Russia (44) and the United States (31) account for the bulk of the remaining planned sites. As the rising role of nuclear power starts to become more evident, industry players will have increasing confidence in the strong long-term demand for uranium. And that could push uranium toward the $65 to $70 mark in a few years -- that's a 25% to 35% spike from current levels. Moreover, share prices of key players could rise at an even faster clip, thanks to high operating leverage at uranium mines.
StreetAuthority. To read more articles from David Sterman on StreetAuthority, you can visit this link. Disclosure: At the time of publication, David Sterman owned no positions in the stocks mentioned.