Cameco Corporation (CCO.TO)

Has been a challenging stock for a number of years. They’re shutting down nuclear plants in Europe and other places. New demand for uranium hasn’t gone up as much as people expected. Eventually they’ll work their way out of it, as it is a cleaner fuel than a lot of other stuff.

The price of uranium has been pretty positive, and the stock has sort of caught up with that. It had a washout bottom back in October, followed by a move above its resistance. The last move was pretty big, so it may want to come back and test at around $11.95. Indicators are turning up and everything is positive about it. A tough call, because it is so volatile.

The long-term trend has been down until recently, when the stock went from around $10.50 to almost $12. The company reduced the amount of yearly production and the price of uranium in the last 2 weeks has gone up 15%. Seasonality is positive from about November through until May. Technicals have changed dramatically during the last 3 weeks. If you own, stick with it or buy on weakness.

If you look at the commodity sector, it has started to get a bit of a bounce. Is the world going to be able to get off nuclear energy? The balance sheet is okay on this. If you think about electric cars and the increasing demand for electricity, there are countries that do not have the capability of generating their own electricity. The longer-term story is good, but the money and this company could be dead for a couple of years.

He doesn't like to bottom fish or to average down. The one thing that is quite positive on the chart is that there was a pretty big downside in 2016 to around $10, which gives you a good place to hang your hat. You also have to allow for about a 3% penetration. From a risk/reward perspective, this is a pretty good area. Put a Stop in just below $10.

The price of uranium has fallen 26% and is down at $46+, which is a big thing. The seasonal for uranium actually starts in November. Wait for this to settle down before stepping into it.

Has always had a low ROC, and is actually getting a little worse. Uranium prices are pretty close to their low as well. Dividend yield of 3.6%.

The price of uranium really hasn’t done much, which is not a good thing. There are a lot of reactors out there and more are being built, and in time there is going to be more demand. However, it is a little early to own this. Wait for more concrete evidence of firmer prices and improving demand.

An enormously disappointing longer-term investment. If the tax case goes in their favour, that will be nice, but the stock really hasn’t done a great deal. There has been a downturn in the demand for uranium. They are building a lot of reactors in China, and are looking to build a lot more in Asia. The only thing that doesn’t emit CO2 for continuous baseload power is nuclear. This is dead money at the moment.

He owns this, because it is a commodity company at the bottom of the uranium cycle. The uranium cycle was upended by the Fukushima disaster. Japan, being one of the big users of nuclear fuel, backed away and have not come back. Natural gas is cheaper in the short term, but we still need a lot of electricity. China is building 60 or 70 reactors and nuclear fuel, in a normal environment, is a low-cost provider. It has very limited environmental impact but has a very negative NIMBY association. There is still no solution in moving spent uranium from a reactor back to some place to store it. Has a $.40 dividend which is secure. This will end up being a spectacular investment.

A long-term kind of hold. Everybody is waiting for a uranium recovery in prices. The buying side has been on a bit of a strike. There seems to be no hurry in restoring long-term inventories among major users. No one is really making a lot of money at current prices. This company has the benefit of having a very good contract book, which protects them from short-term prices. Expects buyers will probably be back in the next 24 months to start to refill inventories, which will strengthen and bolster demand.

Probably the best uranium producer globally, but the commodity business is such that uranium prices have been weak and defying expectations for years. It is hard to have an attractive stock when your commodity price is weak. Renewables are filling up a lot of the area that we thought nuclear would eventually take on. The company has a little issue with the CRA on a tax issue, which could cost them several hundred million dollars. There are better places to be.

The Japan accident took off a lot of demand for Uranium. There has been a surplus of uranium out there from nuclear weapon dismantling and low cost countries’ production. He sees the price of uranium more neutral over the next 6 months.

It is a really tough industry. The best they have done over 20 years is a 5% return on capital and it is at 1% right now. He would look for it to come out of a cyclical bottom in return on capital.

If you want to own uranium, you own this stock because it is the pure play and the best play in the world for uranium. She doesn’t see demand coming back. The Japan story has been problematic. Every time there is a new plant supposed to be started, locals get involved and it gets killed. Also, periodically there are countries talking about switching out of uranium. She doesn’t see a robust demand for uranium.