Cameco Corporation (CCO.TO)

Not a big fan of uranium. From a technical perspective, the stock is falling below the 200 day moving average and is not getting above that very much. Thinks the demand in this particular space is slow and is waning. There is also a surplus.

We have to get uranium above $40 US to get uranium going. As a bellwether, this company will probably lead the price of uranium, so if it breaks out, he would expect something is going on with uranium. He would like to see this company break above $22 with some volume, otherwise we are too early.

Cream of the crop in the space. A well run great Canadian company. Nuclear makes all the sense in the world as a clean fuel as long as you don’t have an accident. It is a question of whether countries will embrace nuclear again.

The uranium and energy spaces got hammered and so now is the time to accumulate them for the next 10 years. Uranium is one of the cleanest forms of energy.

The spot price has gone up on uranium, but the stocks have not responded. URA-T is an ETF that is a basket of uranium stocks and could be watched as representative of the sector. This is a time of year when the sector does well, yet this year it is still in a downward trend, so you want to wait until the technicals change before going in.

This was his top pick for 2015. Seasonality starts around this time of year until May. We had a break down last week and he expects a brutal 4^th quarter because they just started up a new mine. Your down side risk is very, very minimal, but technicals are not good. You want to wait until this thing shows signs of bottoming later in the spring.

It has a big base which is a decent sign. If you don’t own it, he would certainly take a position. His volatility charts shows it is in a positive mood. There will be a short downside followed by a nice upside potential.

The “go to” name in uranium. If the uranium sector is going to do anything, the big money is going to go into this company. So far we haven’t seen that. The chart shows a huge trading range from 2012. Some day it is going to break out. He doesn’t think it is going to break down. Doesn’t think you are going to get hurt, but doesn’t think anything is going to really happen. Until a breakout on volume occurs, there is no hurry.

This is his top pick for 2015. Uranium prices have spiked higher over the last two months or so. A very strong, long term base. If it breaks above the resistance level it is a reverse head and shoulders and we are off to the races. You want to wait for a break out for confirmation before buying.

This will pick up in due course. There was a run up in the price of spot uranium when it was announced that Russia was going to build some more nuclear power plants. There was some suggestion that India was going to do likewise, but he is not sure if that is a repeat of plans already announced. We have to see some firm orders on the table. He would also like to see the Japanese become more involved. For the moment, he would just sit and watch. If he were going to get into this, it would be through the actual commodity via Uranium Participation (U-T).

If you are going to invest in a uranium producer, this is the one to invest in. This is obviously a politically charged investment. Doesn't think there is any way, long-term, that the Europeans, looking at an increasingly belligerent Russian government, can't give nuclear a restart. Also, Chinese coal, oil, natural gas and oil consumption continues to go up. Chinese are embracing the fact that they are killing themselves and everyone else if they don't make adjustments.

This seems to be coming to life. Not sure how this is going to be affected by the price of oil coming down. If you take the view that you want to be in this for a long time, this is a good entry point.

There was a lot of psychological element as to what the spot price of uranium was doing. This is one of the biggest producers in the world. Long life, low costs assets. Japan is now able to restart two reactors. CCO-T can drive growth. Operational issues are now resolved. As they bring on new contracts, it will be positive.

Chart shows this forming a long base from 2012, which it is still doing. This would be the “go to” name. The new round of enthusiasm will probably get this up to around $25. If you are a long-term investor and want to be patient, this would be fine.

The largest player in the world which is where people move generally when the sector starts to turn around. To play uranium directly, he would use Uranium Participation (U-T). This is effectively like buying the commodity. Even the Japanese seem to have enough inventory for now. Longer-term, uranium prices have to go higher. You are not going to find new supplies anywhere close to the current price.