Billionaire Steve Cohen is investing in the “world’s most hated commodity”–uranium. Motley Fool’s Robert Baillieul thinks that he might be on to something. Uranium has been a dirty word for a long time, and a dangerous word since Japan’s horrific Fukushima nuclear disaster in 2011. Prices for uranium had been plunging prior to the catastrophe, as prices fell as low as $40 per pound between 2007 and 2010.
But all that might change, as interest in nuclear power plants renews. Even Japan wants to restart old plants, China plans to build 50 by 2020 and Europe’s boycott of Russia has hurt its natural gas supplies. Meanwhile, uranium producers have simply stopped producing, and supplies have dwindled.
Steve Cohen is buying Cameco, which Baillieul calls “the ExxonMobil of uranium.” Currently Cohen owns 1.6 million shares for a total investment of $27.7 million. Cohen also paid $21-$23 per share, which is not a low price for the stock. Clearly, he has conviction in uranium.