Cameco Corporation (CCO.TO)

This has had a rally in the last few weeks, and like all commodity stocks it participated in the post Trump euphoria. The price of uranium has been a significant disappointment. We really haven’t seen a cleaning out of excess supply. He would like to see significant announcements with respect to sustaining the life of these nuclear reactors in the US, and a reaffirment of the Japanese strategy to restart reactors.

The price of uranium has basically gone nowhere but down over the years. It is very hard to see what would be the catalyst for this name. He would be looking to lightening up. The underlying driver is uranium prices, and you are not going to get a bump.

She understands that the dispute with the CRA is still ongoing. The stock is quite depressed which is really a function of uranium prices. Uranium demand has been quite weak. There is no real near term catalyst. She would not be interested in buying this right now.

This is not a double bottom. There was no distinctive bottom between two rallies. The two bottoms should be more equal. Materials are doing better with Trump and this one has broken its downtrend.

He is not sure it has bottomed. He is going to look into it soon. It will be impacted slightly by a Trump presidency. Uranium is a clean burning fuel. Trump is against it. It could be dead money for years.

(Switching from Uranium Participation (U-T) to this?) Cameco is really a proxy for uranium which has been falling over the last couple of years. He would do the switch as this will allow you to earn some dividend income while you are waiting for the uranium market to turn. Maybe do a quarter now and the rest later.

We had a little bottom right around the 14^th of October. When we look at the long term chart it has been steadily down for a long time. He would prefer to wait for it to cross $15.

Will the lawsuit by the tax authorities create an opportunity for a long-term hold? For the last year or 2, the uranium spot price has been coming down. When you factor in the CRA dispute ($2 billion) it is hard for them to gain momentum. The spot price is currently threatening to drop below $10. Uranium spot prices are at their lowest level since 2005, and there is an oversupply in the market. Prices could go lower and he doesn’t see any catalyst for the company. If the CRA dispute goes away, that might be a catalyst, but it probably won’t finish until spring, so you probably have a good year in which to find a good entry point.

For a 5+ year hold? 5 years is tough, because there are 2 issues. 1) When is new demand for reactors going to pick up, and 2) it has an argument with the CRA, which has yet to be resolved. If he were going to own uranium, it would be through Uranium Participation Corp (U-T).

The science and rationality behind nuclear energy is undisputed, but whether or not we are able to harness that energy in a safe manner is the question. He wouldn’t be a buyer.

This has not been covering itself in glory. If you want carbon free baseload power, you have to have nuclear power. Wind, solar and Hydro are not suitable for baseload. Over time, you would think there would be some demand for uranium, but this has been a disappointing stock. You need to see some power plants actually going online.

There has been a tax dispute going on for a while. The depressed state of the uranium market is hitting them. There needs to be some supply rationalization. We might be getting close to the bottom of the uranium market. He would not buy in right now. The tax dispute will take time. It will not put them under. It is just another overhang.

This has been a house of pain for so very long. Their Cigar lake operation is now operating in very good stead. Unfortunately, the price of uranium is killing them. Doesn’t think that that will prevail forever. A good, long term, blue-chip name you want to accumulate when it is completely out of favour, which is right now. You can sell Puts and oblige yourself to own it at $10 between now and December and maybe make $1. Eventually this will be worth a lot more.

(Market Call Minute.) He doesn’t own any thing in uranium right now. At some point in time, with all the nuclear plants that are coming on board, the stock is going to probably respond, but at this time he is happy just to watch.

Has been an extremely disappointing stock. This is really the timing of an improvement in the uranium market. Big overhang. Lots of nuclear reactors being built globally, but there is a big inventory overhang that you have to work your way through. You are probably looking at 2-3 years before there is some visibility. In the meantime, he expects the stock will go sideways.