Riverwater Partners, an investment management company, released its “Micro Opportunities Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. The strategy reported solid absolute returns in the quarter but lagged the benchmark as it did not keep pace with the strong rally. The strategy continues to focus on quality companies in the volatile environment. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025. In its third-quarter 2025 investor ...

Core Insights - Riverwater Partners' Small Cap Strategy reported solid results for Q3 2025 but lagged behind the benchmark due to market preference for lower-quality companies [1] - The strategy focuses on higher-quality companies with strong fundamentals and a clear path to profitability, positioning itself well in a challenging market [1] Company Highlights - Uranium Energy Corp. (AMEX:UEC) showed strong performance with an 8.38% return over one month and a 64.59% increase over the past 52 weeks, closing at $12.41 per share with a market capitalization of $6 billion on December 15, 2025 [2] - Investor sentiment for Uranium Energy Corp. improved due to a nuclear energy renaissance and U.S. policy shifts favoring domestic uranium supply, including restrictions on uranium imports from Russia [3] Market Conditions - Tight global supply and rising demand have pushed uranium spot prices into the high $70s to low $80s per pound range, enhancing revenue visibility for companies in the sector [3] - Uranium Energy Corp.'s U.S.-based in-situ recovery projects and plans for a refining/conversion subsidiary provide leveraged exposure to rising uranium prices and favorable regulatory conditions [3] Hedge Fund Interest - At the end of Q3, 41 hedge fund portfolios held shares of Uranium Energy Corp., an increase from 32 in the previous quarter, indicating growing interest among institutional investors [4]

Core Viewpoint - Uranium Energy Corp. (NYSEAmerican: UEC) is experiencing a positive market response, with a significant stock price increase of 9.52% to $14.15, driven by strong investor confidence in the uranium industry despite mixed earnings results for Q1 FY 2026 [1]. Financial Performance - The company narrowed its net loss by 48.7% to $10.34 million from $20.16 million year-over-year, but reported no revenues compared to $17.09 million in the same period last year [2]. - Operating loss more than doubled to $29.8 million from $13.2 million [2]. Future Outlook - Despite the current financial results, the company maintains an optimistic outlook for the full fiscal year of 2026 [3]. - The launch of the United States Uranium Refining & Conversion Corp. is seen as a significant development, positioning UEC as the only US supplier with both uranium and UF production capabilities [4]. - The company is expanding its low-cost In-Situ Recovery (ISR) production and advancing growth projects in Wyoming and South Texas, which are expected to support higher output for the remainder of fiscal 2026 [4]. Strategic Positioning - UEC's developments are strengthening its position as a leading American nuclear fuel supply chain provider, aligning with US policy [5].

December 5, 2025 06:43 AM GMT Greater China Materials | Asia Pacific M Update Uranium: Takeaways from Sprott Discussion We hosted the CEO of Sprott Asset Management for a discussion on uranium. Despite volatile spot prices in 2025, rising term prices is a positive signal, with contracting activity accelerating in Nov. This comes against a backdrop of disciplined supply and supportive global policies for demand. Key Takeaways Morgan Stanley Asia Limited+ Chris Jiang Equity Analyst Chris.Jiang@morganstanley.c ...

Group 1 - The company primarily invests in turnarounds within the natural resource industries, with a typical holding period of 2-4 years, focusing on value for downside protection and upside participation [1][2] - The portfolio has achieved a compounded annual growth rate of 36% over the last 7 years, indicating strong performance in the investment strategy [1] - Yellow Cake (YLLXF) is identified as a passive investment company that owns uranium, listed in the UK with an OTC listing in the United States, focusing on quality characteristics and depressed valuations [2] Group 2 - The investment strategy emphasizes participation in the upside of natural resource investing while mitigating extreme drawdowns, which are common in this sector [2] - The current focus on natural resource industries is driven by favorable monetary and fiscal policies, underinvestment, and attractive valuations [2]

Group 1 - Cameco Corporation (NYSE:CCJ) is recognized as one of the top energy stocks with significant upside potential, with UBS initiating coverage on November 10 with a Neutral rating and a C$140 price target, citing recent price gains despite favorable industry fundamentals [1] - UBS expects a substantial increase in Cameco's profitability this decade as the company recontracts supplies at higher spot prices and its Westinghouse unit secures contracts for new nuclear reactors [1] - The firm is currently "on the sidelines" due to the stock trading close to full value on various valuation metrics, but anticipates a rise in spot uranium prices in 2026, potentially driven by an inventory restocking cycle [2] Group 2 - Cameco Corporation reported mixed financial results for Q3 2025, with earnings per share of $0.07, significantly lower than the expected $0.23, resulting in a 69.57% negative surprise; however, revenue reached $615 million, exceeding forecasts of $568 million [3] - The company operates through three segments: Uranium, Fuel Services, and Westinghouse, providing uranium for electricity generation [4]

Mr. Wayne Heili, Director Mr. Heili is a metallurgical engineer specializing in uranium recovery throughout his 35+ year professional career. Starting out in South Texas and later moving to Wyoming, Mr. Heili has held technical, managerial and senior executive roles in both major corporate and junior development uranium production companies. He served as Vice President of Mining and later as Chief Executive Officer of Ur-Energy Inc. as it advanced projects from conception to production. Mr. Heili most recen ...

Core Insights - Centrus Energy (LEU) and Uranium Energy (UEC) are positioned to benefit from the U.S. focus on nuclear energy independence, despite current uranium price pressures [1][2] - The long-term outlook for uranium remains strong due to the clean energy push and its strategic importance highlighted by the U.S. Geological Survey [2] Centrus Energy (LEU) - Centrus Energy supplies components of nuclear fuel, including Low-Enriched Uranium (LEU) and natural uranium hexafluoride [3][4] - In Q3 2025, Centrus reported total revenues of $75 million, a 30% increase year-over-year, with LEU segment revenues rising 29% to $44.8 million [5] - The company experienced an operating loss of $16.6 million, attributed to increased sales costs and project expenses [6] - Despite the operating loss, Centrus posted a net income of $3.9 million due to tax benefits and higher investment income [7] - Centrus holds a $3.9 billion revenue backlog with long-term contracts through 2040 and is the only licensed U.S. producer of High-Assay, Low-Enriched Uranium (HALEU) [7][8] - The HALEU market is projected to grow from $0.26 billion in 2025 to $6.14 billion by 2035, with Centrus planning to expand production capacity [9][10] Uranium Energy (UEC) - UEC has a production capacity of 12.1 million pounds of uranium and reported fiscal 2025 revenues of $66.84 million, a significant increase from $0.2 million in the prior year [12][13] - Operating costs surged 104% to $66 million due to higher development spending, leading to a loss of 20 cents per share in fiscal 2025 [14][15] - UEC is transitioning from developer to producer, successfully restarting operations at the Christensen Ranch ISR Mine [17] - The company acquired Rio Tinto's Sweetwater Complex, adding significant resources and establishing a vertically integrated production platform [19] Financial Estimates and Valuation - The Zacks Consensus Estimate for Centrus Energy's 2025 revenues is $448.6 million, indicating a 1.5% growth, while UEC's fiscal 2026 revenues are estimated at $72.9 million, reflecting a 9% improvement [19][22] - Centrus Energy's shares have surged 275.1% year-to-date, while UEC shares have gained 80.7% [27] - Centrus is trading at a forward price-to-sales multiple of 9.29X, significantly lower than UEC's 63.96X [29] - Centrus Energy is viewed as a more attractive investment option due to upward estimate revisions and its unique position in the HALEU market [32]

Core Insights - The article discusses the performance and potential of SMID-cap stocks in 2025, highlighting their current underperformance compared to large-cap stocks and the expectations for future growth [2][3][4]. Market Overview - SMID-cap stocks have year-to-date total returns of approximately 3% for small caps and 1% for mid-caps, while the S&P 500 Index has returned over 12% [2]. - Expectations for SMID-cap stocks are positive, with forecasts indicating a shift from low-single-digit earnings growth this year to low-double-digit growth by 2026 [4]. Analyst Insights - Scott Chronert from Citi emphasizes the potential for SMID-cap equities as investors seek growth opportunities beyond large-cap stocks, particularly in light of improving earnings forecasts [3][4]. - The article notes that historical performance shows small caps tend to outperform large caps during periods of monetary policy easing, with an average outperformance of 6% in the 12 months following the first rate cut since 1979 [6]. Stock Selection Methodology - The selection of the hottest SMID-cap stocks involved screening U.S.-based stocks with market capitalizations between $300 million and $10 billion, focusing on those with year-to-date returns exceeding 100% and significant hedge fund interest [8][9]. Featured Stocks - Viasat Inc. (NASDAQ:VSAT) has shown a year-to-date total return of 257.9%, with a market cap of $4.1 billion and 37 hedge fund holders. The stock's rise is attributed to positive analyst ratings and potential strategic moves to unlock shareholder value [10][11][14]. - Centrus Energy Corp. (NYSEAMERICAN:LEU) has a year-to-date total return of 262.3%, with a market cap of $4.4 billion and 27 hedge fund holders. The stock's performance is linked to the U.S. government's push for increased nuclear energy capacity and domestic uranium mining [15][17][19].

Core Insights - Energy Fuels Inc. and Cameco Corporation are significant players in the uranium industry, positioned to support the global nuclear energy supply chain [2] - Uranium prices have recently decreased to $77 per pound from a 14-month high of $84, reflecting a 3% decline over the past year, but the long-term outlook remains strong due to the clean energy push [3] - Energy Fuels has seen a substantial increase in revenues, while Cameco has faced revenue declines, highlighting differing performance trajectories [12][15] Energy Fuels Overview - Energy Fuels is the leading U.S. producer of natural uranium concentrate, accounting for two-thirds of domestic production since 2017 [5] - The company mined approximately 465,000 pounds of uranium in the third quarter, totaling about 1,245,000 pounds for the year [6] - For 2025, Energy Fuels expects to mine between 875,000 and 1,435,000 pounds of uranium, with potential finished production reaching up to 1,000,000 pounds [7] - In Q3, Energy Fuels sold 240,000 pounds of uranium at an average price of $72.38, generating $17.4 million in revenues, a 337.6% year-over-year increase [8] - The company ended Q3 with $298.5 million in working capital, including $94 million in cash and no debt [9] - Energy Fuels is also advancing heavy rare earth element (HREE) separation, with commercial output expected in 2026 [11] Cameco Overview - Cameco accounted for 16% of global uranium output in 2024 and operates across the entire nuclear fuel cycle [14] - The company reported a 2% increase in uranium production to 4.4 million pounds in Q3 2025, but total revenues fell 14.7% year-over-year to CAD 615 million ($446 million) [15][16] - Cameco revised its full-year target for uranium deliveries to 32–34 million pounds, with expectations to exceed production targets at Cigar Lake [18] - At the end of Q3, Cameco had C$779 million ($565 million) in cash and C$1 billion ($725 million) in long-term debt [19] Financial Performance Comparison - Energy Fuels stock has appreciated 157.5% this year, outperforming Cameco's 59.6% gain [26] - Energy Fuels trades at a forward price-to-sales multiple of 36.86X, while Cameco's multiple is 14.29X [26] - The Zacks Consensus Estimate for Energy Fuels indicates a revenue drop of 39.8% in 2025, while Cameco's estimates imply a 6.2% growth [21][22] Conclusion - Both companies face short-term revenue challenges due to volatile uranium prices, but Energy Fuels is better positioned for growth with a debt-free balance sheet and strong liquidity [27] - Energy Fuels' diversified asset base and advancing REE projects enhance its long-term potential compared to Cameco [27][28]