Warning: This Skyrocketing Stock Has a Hidden Risk
Share prices of Uranium Energy (NYSEMKT: UEC) are skyrocketing, rising by a huge 153% or so over the past year. To put that in perspective, the S&P 500 index is only up about 22% over the same period. Don't get too excited, however; there are a couple of big risks here that you ignore at your peril.
Uranium Energy sells uranium, as you might expect given its name. However, it is important to note that it is not a uranium miner. When the nuclear fuel's price hit historic lows, Uranium Energy made the decision to start buying. It built up a substantial stockpile of the fuel at low prices that it can now sell at higher prices. In hindsight, that was a very wise choice, but the main value of the company is in that stockpile.
Source Fool.com
