Four years ago, we had alerted our readers to the raging bull market in Uranium, a bull run that was interrupted by the financial disaster of 2008, but was in the midst of an upturn in 2010 and early 2011 when the Japanese earthquake and threat of a nuclear meltdown hit the markets. Uranium stocks have since taken a beating, and analysts on both sides of the nuclear debate have come out strongly in support of their respective positions. It is worth examining the situation carefully and calmly and project 12-15 months into the future.

Assuming that the nuclear situation in Japan is contained (and for heaven's sake, we hope it is), the stock market itself will begin recovering but a cloud will hang over the uranium sector. In the established economies of Europe and US, the nuclear renaissance will be significantly delayed and even a year from now, the Japanese situation will hang over the sector. In the high growth economies of China and India, new safety regulations would have been put in place - some useful, others not so - and the authorities will likely convince themselves that their nuclear reactors will be better prepared to handle the type of situation that presented itself in Japan.

In other words, at least in significant parts of the world, the nuclear energy build-out will continue. However, we can expect the potential shortage in uranium to be played out over a longer time horizon than before, which will permit mining and exploration companies to be closer to their target production levels. A bull market in uranium will eventually resume, but will likely be more muted than it would have been otherwise. Any bullish enthusiasm will be constantly tempered with the effects of the current Japanese nuclear disaster.

Are uranium mining stocks still a good investment? It would seem that those mining companies that are in production or close to production would enjoy a revival, but it will take longer and recovery will be more subdued than it would have been otherwise. The sector is probably net "dead money" over the next 12 months, but will begin some form of recovery after that as the Chinese and the Indians resume their nuclear build out. Over the next three years, the stocks are likely to be higher than where they are today - but they could possibly be purchased more cheaply at some point over the next 12 months. Again - do your homework and make your own decisions before investing any money in any sector, after all, you worked hard for that money!

Happy Investing!