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The Alternative Energy Trade

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As oil nears $80 a barrel, alternative energy companies seem to warrant a closer look. Uranium play Cameco (CCJ), reported before the bell Monday, and beat analyst estimates by 13 cents per share. However, by the end of trading, investors bid the stock lower after the world's largest uranium producer guided downward. Is CCJ a smart play on alternative energy?

Uranium spot prices are up more than 170% in the past 7 months and over 1000% in the past 5 years. Cameco Chief Executive Gerald Grandey joins the guys with some insights. Following are excerpts of what was said.

What kind of insight can you give us about demand?

“As fossil fuels become more expensive.. people recognize the benefits of nuclear,” replies Grandey. “There’s a real buzz about nuclear power these days.”

Do you notice that as oil ticks higher demand for your products also ticks higher – in tandem?

“Not really,” says Grandey. “Because building a new nuclear plant takes 8-10 years.. But there’s more recognition that nuclear has to be a larger component in the future.”

Eric Bolling explains that it’s a crowded trade because hedge funds are big players in this space.

Grandey says “We’re a long term play.. the earnings results over the last quarter are indicative of the strong future for this organization… we think by being a nuclear energy company we’re well positioned for the renaissance.”

What’s the renaissance?

“The renewed interest in nuclear power and the rediscovery of its environmental benefits… we’re positioning CCJ to take advantage of this.”

Eric Bolling says he would only recommend CCJ and USEC (USU) as a long term investment, which he calls at least 6 months. Bolling explains these stocks are not a short term trade because it’s volatile space.

On a related note, in the solar power space Pete Najarian likes Sunpower (SPWR) and Cypress (CY) as well as MEMC Electronic Materials (WFR).

Jeff Macke prefers PG&E Corp. (PCG).

Symbol
Price
 
Change
%Change
RIB.UN
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CY
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PCG
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LEU
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SUNEQ
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Trader disclosure: On July 30th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (JWN), (INTC); Najarian Owns (UA), Bolling Owns (XOM), Gold; Bolling Is Short (FXI); CNBC Is A Service Of NBC Universal And Dow Jones