Vedanta seeks $1 billion in upsized share placement
Vedanta is joining a slew of Indian companies tapping stock investors amid surging valuations and increasing demand for equity investments in the country.
The balloon in uranium stocks has suddenly been popped by the imminent threat of a nuclear reactor meltdown in Japan. Jonathan Ratner from The Financial Post looks at what could happen next for uranium stocks.
Developing events at nuclear facilities in Japan had a swift impact on uranium equities as the week began. Industry leader Cameco Corp. dropped nearly 13% on Monday, while smaller players like Denison Mines Corp. and Uranium Energy Corp. fared much worse. The selling continued on Tuesday as spot prices declined 9.8% and the situation in Japan failed to improve, so the damage may be far from done.
Major non-financial events, whether specific to companies, industries or all-inclusive, frequently bring about quick liquidation in related markets as investors move to preserve capital, noted Ross Clark of Vancouver-based Institutional Advisors.
He highlighted the BP oil spill, flooding of Cameco’s Cigar Lake mine, 9/11, Japan’s Kobe earthquake and the assassination of JFK as examples.
Mr. Clark expects uranium stocks to bounce off the sharp declines, only to see further waves of selling, with junior miners and explorers likely to underperform for an extended period of time.
