Cameco Corporation (CCO.TO)

He doesn’t really look at uranium stocks. You hear the Chinese are building lots of reactors, but Japan and Germany are closing down nuclear facilities. There is not a lot of growth for nuclear in the rest of the world. This is an energy stock and it trades like an energy stock. He would rather own oil companies.

Has always been wary of uranium. It is not just a supply/demand problem, but is also a political animal. The US has continued to build large inventories of uranium, so there doesn’t seem to be any immediate reason for the price to go up. They just got approval to double the capacity of their McLean Lake production facility. On the other hand, their last quarter had some definite disappointments.

Thinks it is building a base and it has plenty of room to go higher. It’s been very, very range bound for quite some time. Needs to get above $17-$18 to change the channel that it is in right now. If he had this, he would continue to hold.

This is strictly a supply/demand scenario. Right now there is so much momentum in other things that he would be shoring up those monies in the areas where he sees momentum coming, and that would be on precious metals.

Hold or Sell? It is going to take a couple of years for uranium to resolve itself. Expects at today’s price, you will be happy 5 years from now. What he does in situations like this where there is underlying value, if the stock is volatile enough, selling near dated Puts and Calls and capturing the premiums. That forces you over time to do something logical, Buy low and Sell high, and it causes you to get paid doing something logical in the interim. You need to talk this over with your financial advisor.

(Market Call Minute.) Has said for 10 years that if it ever got to $15 he would look very seriously of buying it. It is close to the point where it is getting interesting.

The company is saying that the current tax issue is going to go away and is not going to be a problem, and if it doesn’t go away they are well reserved for it. He just doesn’t see a lot of growth in this. They’ve had lots of problems with their mines in the past, and have never really recovered from it. Believes that there is a long-term future for uranium, but just doesn’t know if it is a great business to be involved in.

Uranium. Long-term he thinks this is a great, great company. In the short term, this is a difficult sector. Uranium is hitting 10 year lows on the spot market. If you want to invest in uranium, this is a wonderful way. In the short term, he doesn’t see the stock going up. Uranium prices are hitting new lows.

He would normally stick to his model price. Right now there is nothing in the market. At $14.82 he would maybe buy it. If it broke through $21.50 he would agree it is going up. There is a 26% upside to his model price, but the market needs to believe it, which it does not right here, right now.

The uranium story might never come back. With natural gas at $2, nuclear power doesn’t make any economic sense. Also, with solar power getting cheaper and a huge amount of installed wind power based already, he is not sure nuclear power ever will be economic again.

Uranium might be interesting. For all the negative headlines that we have had, he thinks there is still going to be tremendous demand for uranium.

The time for uranium is changing, however it is changing so slowly it is almost imperceptible. The Japanese are back on to nuclear, and that is going to be a trend you are going to see. It is going to be a long time before we really see the base price of a commodity heading up. If you own, you could probably take your money and go somewhere else, and then come back sometime in the future.

Likes uranium. It has been depressed since 2011 with the Japanese nuclear accident. In the medium and long term, uranium prices need to be a lot higher, such as $60-$80. This is one of the biggest public producers. In the short term, there is not much going on. $35 uranium barely makes enough money and there is no visible earnings growth. Prefers Uranium Participation (U-T) which gives more direct exposure to the commodity.

It has been a long time since he has owned this, but it is back on his radar screen. Fundamentals are improving for uranium. There are new reactors being built pretty rapidly in China. Uranium does offer a power source that doesn’t produce carbon emissions. Thinks it will be really hard for the stock to take off without a more positive view on all commodities.

The stock is at a level where he cares. He likes this down where it is. Has very little resistance. If you own, continue to do so.