Cameco, Energy Fuels, Almonty Industries, Vonovia – Trump decision causes stocks to explode

Cameco and Energy Fuels explode

The tariff hammer and the threat to impose tariffs of 50% on imports from the EU starting in June was the dominant news on Friday afternoon, dragging the German benchmark index DAX down by more than 3.40% at its peak. Shortly before that, the news agency Reuters reported equally dramatic news, which secured double-digit gains for uranium stocks such as Cameco, Uranium Energy, and Energy Fuels.

According to the report, insiders said that Donald Trump is planning a far-reaching energy policy offensive due to the increased demand for electricity from AI centers. Decrees are to be issued to significantly strengthen the American nuclear industry. A central component of the planned package of measures is to accelerate the approval process for new reactors and secure supply chains for critical fuels such as enriched uranium. According to a draft, credit guarantees and direct loans are also to be used to secure investments in the construction of new nuclear power plants.

Trump intends to invoke the Defense Production Act from the Cold War to justify the planned measures. This is intended to provide the legal basis for declaring a national emergency – against the backdrop of the US's high dependence on Russia and China for uranium supplies, fuel processing, and key reactor components.

In addition, the US Department of Energy and the Department of Defense are to be tasked with identifying suitable federal land for new nuclear power plants and streamlining existing administrative processes.

Almonty Industries – Trump statements give wings

Securing energy supplies is only one central component of the plan by the energetic US president. Equally important is creating independence and securing supply chains for critical raw materials such as rare earth metals and tungsten. The situation is particularly dramatic in the case of tungsten, as China controls almost 90% of the global tungsten trade, partly through its own production and partly through the processing of imported raw materials. The West urgently needs alternatives to avoid being cut off from supply.

This critical metal is used in many sectors of the economy. Due to its outstanding physical properties, such as high density, hardness, and heat resistance, tungsten is needed in battery anodes in the electric vehicle industry, in power electronics, and in hard metals. The turning point in history has also fueled national interest. Due to military buildup, tungsten is essential in the manufacture of armor-piercing ammunition, ballistic protection systems, and rocket engines.

Almonty Industries is one of the hottest companies on the stock market due to these circumstances. With the imminent start of the Sangdong mine in South Korea, insiders expect production to begin this summer. The mega-project is expected to cover around 30% of tungsten production outside China and Russia. The initial annual production of 5,000 tons per year is also to be gradually increased in the future.

The market capitalization of the Canadian company, which has been successfully operating the Panasqueira mine in Portugal for years and has matured into the European market leader with the Los Santos mine in Spain, is around CAD 678 million at a share price of CAD 2.37.

Analysts at Sphene Capital see the fair value of Almonty shares at CAD 5.40. The experts at GBC AG were also bullish, rating Almonty shares as a "Buy" in their initial study with a price target of CAD 4.20.

Vonovia – Optimistic statements

The shares of Germany's largest residential real estate group also bucked the trend at the end of the week. Vonovia shares rose by over 1.2% to EUR 28.99, overcoming the downward trend that had been in place since October 2024. The next important hurdle is the horizontal resistance level at EUR 33.93, the high from 2024.

The reason for the strong momentum lay in statements made by company CEO Rolf Buch, who predicted that Vonovia was entering "the beginning of a new, long growth phase." In the text of his speech for the Annual General Meeting on May 28, published online, the Bochum-based company said it would now be able to fully leverage the advantages of its platform and the benefits of the integration of Deutsche Wohnen for the first time.

The first quarter of the current fiscal year had proven that the growth initiative that had been launched was off to a good start. Vonovia wanted to increase the contribution to total operating EBITDA from housing-related services, project development, and the sale of apartments. By the end of 2028, they were expected to contribute 20 to 25% to operating profit. According to the revised forecasts, adjusted operating profit is expected to be 30% higher in 2028 than in 2024.

Trump is once again wielding the tariff hammer against Europe, causing stock markets to falter. On the other hand, uranium stocks and shares in critical raw materials are benefiting from a possible decree. Vonovia is optimistic about the future.