Why Did Centrus Energy Stock Drop Today?

President Trump wants to kick-start nu plant construction in the U

It might not be as easy as it seems

ET Tuesday after The Wall Street Journal warned investors that President Trump's plan to kick-start a nu power renaissance in America "won't be easy. " Image source: Getty Images

Centrus is today bably best known as one of a handful of nu stocks aiming to restart uranium enrichment for use as fuel in nu power plants in the U

The company already sells enriched uranium to power plants in the U. , of course, but primarily in the capacity of a broker, buying uranium from foreign suppliers and reselling it in the U

Both parts of the, therefore, depend on growing demand for nu power -- from a growing number of nu power plants operating in the U

According to the Journal, though, "Most current efforts [to grow nu power supply] are aimed at extending the operating licenses of existing reactors or trying to restart a handful of recently closed reactors. " That's more ly to maintain existing levels of uranium demand than grow it

And as for sparking a "nu renaissance," the Journal points out that this has been predicted multiple times in the past, but "didn't pan out. " Is Centrus stock a sell

Will this time be different

Despite all the hype, and despite (or because of) its stock price quadrupling over the past year, Centrus remains a speculative investment

Rich Smith has no position in any of the stocks mentioned

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