James TelfserCameco CorporationCCO.TOCOMMENTJun 20, 2016

Has a trailing stop on every position. As a stock rallies, they ratchet up the stop loss. They exited at $150. As a cyclical, you have to pick your spots. Not necessarily one to own come hell or high water. At some point, it will set up again (likely when there's clarity about how long the Fed will hike for).

The whole uranium space has been slaughtered, but he's held on. The chart is back to support. Volatile. It will bounce up again. We need power.

It peaked earlier this year. Each time it's tried to rally this year, it has sold off to a lower high, and whenever it's tried to rally, it reaches a lower high. Over 5 years, the trend remains up. If you believe there's a long-term trend for nuclear power, stick with it. But he doesn't see the world returning to nuclear in a big way. This correction period could see more downside.

There are tailwinds there since it will be a challenge meeting the demands from all the new nuclear facilities coming online in the next few years. Therefore prices for uranium should go higher. The pullback over the past four months in this sector is a result of expectations getting too high. All these small nuclear reactors that are talked about will take time to build. More nuclear energy will be generated over the next five years.

Very expensive on current fundamentals. Ownership in Westinghouse is a great opportunity, but nuclear plants take a really long time to get approved and built. Kazakhstan is a bigger producer at lower cost. He's traded it in the past. Wouldn't get excited till it got below $100.

This has traded off the AI revolution, but has become more volatile than before like a tech stock. This pulled back from $180 to $120 but is seeing support. So far so good. Wait for a bounce before entering. 

Short term, benefits from weak USD. Corrected when Warsh came in tough on inflation, people expected higher rates, and the USD rallied. We're in the next leg of this bull market. Lots of opportunities for growth.

Has long owned this. He goes overweight on it, then reduces it, then buys when it falls to a support level. The last support of $125ish was tested successfully recently. He's happy to trade this. $175 is major resistance.

We're going to need more energy in future, and he likes the idea of clean energy. Stock price is below 200-day MA, though starting to move higher. High beta (~1.7x), but a strong name almost in a class by itself. Look for it to get above the 200-day. He's adding for new clients.

ChatGPT unleashed a need for reliable power to electricity-hungry data centres. Recent results were mixed, but noteworthy was Westinghouse filing confidential IPO application. That should be huge, and CCO will benefit as 50% owner. Uranium supply/demand should get much tighter; demand will grow, and governments are investing in nuclear.

PE is high, but it's more of a net asset value story (very discounted compared to what it's really worth).

Beat in last quarter. Lots of growth opportunities. One of the premier companies for uranium. A must-own stock. High octane, trades ~6x PE for 2027 and growing ~30%. He'd like to buy it lower -- he might sell some puts.

The market gets excited about a theme, and then reality hits with how long does it actually take to play out in earnings numbers? Broke down technically. He's watching it all the time, because there's a future there. Once you hold it, be prepared to add when it's down and trim when it does well.

He sold, as its relative strength decreased. Still weakening. Next support appears to be ~$120.

He reduced his uranium holdings, but likes CCO. It's volatile. Is holding on, though sold another uranium stock His stop is $130.

Renewed interest in the sector, as energy prices have gone up. Fewer suppliers, and it shows in the stock chart. So valuations have gotten robust. If you've been lucky enough to participate in the runup, look to trim slightly and allocate to something more undervalued.