Cameco Corporation (CCO.TO)

The price of uranium, whether it spot or contract, was really in the tank. Then the courts allowed nuclear reactors in Japan to start up again. There are 20 more that have applications in. Doesn’t feel power plants are going to make much difference to the price of uranium. If you are going to be in the uranium space, it should be Uranium Participation (U-T), not this one.

(Market Call Minute.) Doesn’t see any near-term catalysts to get uranium prices going.

Chart shows that this had a nice little break out in the last couple of days, so technically the stock is in an upward trend. It’s trading above its 20 day moving average and outperforming the TSE Composite. Technicals are all turning positive at this point. Seasonality starts turning positive around the 2^nd week of April, and continues to be very strong right through until the end of May.

He would categorize this as a short term hold and long-term buy. The uranium market continues to be a bit challenged. This looks expensive because they are the biggest uranium miner in the world. Because of that, they are given a premium. Because of the problems in Japan, a lot of uranium has come off as the Japanese shut down their nuclear reactors. They are starting to restart some which should create a surge of uranium demand this year and next. Feels there is potential here.

(Market Call Minute) They have some issues with the CRA. It is cheap and has had some decent potential on the upside so offers you a fighting chance.

He thinks uranium is 2 or 3 years away and doesn’t see any catalysts in the short term.

Built a big base in the $15-$16 area and has bounced off it several times. With this kind of stock, you look for successful tests off a base, and you try to trade that. Trading at this off a base, you could make a half decent buck in relatively short term trades. Let it finish dropping to the bottom of the base and bounce, and it is probably worth a buy.

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.