In this article, we talk about the 5 penny stocks for long-term profits. If you wish to read about some more penny stocks, go directly to 10 Penny Stocks for Long-Term Profits.
5. Uranium Energy Corp. (NYSE:UEC)
Number of Hedge Fund Holders: 12
Share Price (as of August 5): $4.26
Uranium Energy Corp. (NYSE:UEC) is a Texas-based company which deals in the exploration, extraction, and processing of uranium and titanium concentrates in the United States, Canada, and Paraguay. Out of all the hedge funds tracked by Insider Monkey, 12 reported ownership of positions in Uranium Energy Corp. (NYSE:UEC), as compared to 10 hedge funds a quarter earlier.
Sky high natural gas prices, climate change concerns regarding usage of coal, and unreliability of renewable resources has led Europe and the larger globe to reconsider its stance on nuclear energy, and Uranium Energy Corp. (NYSE:UEC) stands as a long-term beneficiary of these trends. As of August 5, shares of the company have risen 93.64% in the last 12 months.
On June 13, Uranium Energy Corp. (NYSE:UEC) announced that it had purchased uranium mining firm UEX Corp. (OTCQB:UEXCF) for roughly C$234M in an all-stock transaction, thereby resulting in the former boasting the largest uranium portfolio in North and South America. On June 15, Canaccord analyst Katie Lachapelle raised the firm’s price target on Uranium Energy Corp. (NYSE:UEC) to $6 from $5.50 and maintained a Speculative Buy rating on the shares. She noted the UEX transaction as positive given that long-term value can be derived from acquired assets.