AssessmentFaced with higher costs (up 70 %) and concerns of their sponsoring FC1 Racing, should I hold onto NXE? In my view, Uranium and Nuclear still looks good.
Some investors are concerned by the move from NXE to sponsor Aston Martin's F1 racing team, as it is somewhat of an odd move for a uranium mining company. That said, we feel that the nuclear industry still has plenty of potential and room to grow, and NXE, while a risky and high growth name, has lots of potential left as well. It could enter a period of consolidation here, as momentum has turned slightly lower, but if it begins to see positive news flow, we could see it pick back up. We would be comfortable holding here. (5iResearch)