Peter Hodson Cameco Corporation CCO-T COMMENT Aug 03, 2016

On fire. He used to be in and out, but then it broke out and held for more than a few days. Took some profits (50%) recently, as it's a bit parabolic. Still likes it, wouldn't bail out. Bit overbought, could retrace a bit. 

Nuclear renaissance, and then Russian invasion of Ukraine really tightened up supply and turbo-charged the idea. Cigar Lake producing steadily. Mothballed mine reopened. Low-cost, long-life reserves. Joint venture with Kazakhstan facing issues, but that's a small piece of the puzzle.

Deals with data centres continue. Uranium price is firm, but not high enough to stimulate new supply. Westinghouse JV has signed numerous deals, moving CCO price higher recently. Finding its way into green energy portfolios. Still likes.

Sometimes a stock just gets ahead of itself, or the market thinks expectations are too high. Pretty mature, and great, business in the space. His team only buys or sells if there's a significant change in the business or valuation.

He focuses on companies earlier in their cycle, such as NXE.

How much of their forward PE is already baked into their price vs. the upside. If you hold a large position, take profits. When a commodity price is high, always take some profits. The long-term chart is choppy.

We need this power. Likes it long term, as the entire space of clean energy from nuclear power makes sense. Valuation extended. Pushed up into a different stratosphere technically. He'd look to buy in the $80s and $90s. Likes the chart's technical structure.

CCO is the bellwether, and a big part of URA, a uranium ETF. On the chart for CCO, you can see that it's had a big move but starting to stall out a bit. Starting to consolidate in time. Important support around $85, a 10-15% correction. Likes the chart longer term, but at these high levels it's like flipping a coin. He'd be nervous to put on a big position, especially with his view that a correction is coming in next 1-3 months.

Caught up by sellers in the momentum stocks. Long-term picture for nuclear power is really strong. Demand for power will continue to grow, and this is one of the links in that chain. Stock's pulled back a bit, and he'd be a buyer.

For the longest time, no one wanted to talk about this one. All of a sudden people have realized that nuclear is safe, clean, and abundant. Has become in vogue. When uranium is sold to power utilities, those contracts are done for 5-10 years at a time. So he's not sure the earnings power is going to jump up.

If you have a long-term view of 10 years plus, then maybe you want to have a position. If not, be cautious on valuation. Wait for a pullback or for sentiment to become a bit more negative.

Wait for a pullback, as optimism of whole world on uranium is at fever pitch right now (but for very good reason). Need uranium and nuclear to be part of the power solution. Proxy for uranium market (illiquid and opaque), and spot uranium prices are very strong.

Uranium pricing is moving higher. Great acquisition on nuclear from Westinghouse. First of the uranium companies to break out to new highs a couple of years ago. Giant structural base. Pricing power and volume growth. Core in his portfolio, not speculative. Will benefit over next few years from the environment we're in. Yield is 0.12%.