Cameco Corporation (CCO.TO)

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.

The period of seasonal strength is normally from October right through until the end of February. It is clearly not happening this year. Technicals are not good. Stock has been in a long downward trend. Broke through its 20 day moving average.

Has a $12.50 target on this. Wouldn’t be surprised if the stock gaps down tomorrow. This is certainly going to be volatile.

Doesn’t own any mining stocks. Eventually uranium is going to be a good place to be because of future huge demand. There is not much reason to own this here.

The increase in the consumption of uranium for power stations is visible and is big. It is slow growing, and it still hasn’t moved the price of the metal. The metal is now stuck with the general decline in hard commodities. This is the premier stock globally, and should be safe. One day in the future it should reflect a higher uranium price.

They have a potential tax liability with revenue Canada, which could be as high as $800 million, so that is a bit of an overhang. Up until the Japan nuclear disaster, it looked like uranium prices were going to go up. He is just not a full believer.

(Market Call Minute) You want to own this when Uranium gets squeezed higher. It is one of the few resources he has.

This has long term support at around $17-$18. The only danger right now is that the highs are getting lower. You have to wait for a break out. As an investor, he would wait for it to break out above $19 before he bought it.

This has been the bane of his existence. It has not worked the way he had hoped it would. Since January it has been slipping slowly, but surely, into lower levels. Technically, it is still in a downward trend. Seasonally, this is the time for this company to normally do well.

He owns shares and intends to acquire more. He is particularly attracted to uranium. Globally it costs about $65 a pound, including the cost of capital, to make uranium. They sell it for $35 a pound, meaning they are losing $30 a pound and are trying to make it up on volume. Canada is the world’s best and lowest cost producer. The price has to double, or else the supply goes away.

This is going to take some time. The stock is reasonably safe. Cigar lake is working well. You might get more spice out of some of the smaller producers such as Denison (DEN-T) or Fission Uranium (FCU-T).