Cameco Corporation (CCO.TO)

A lot of the move is on expectation and we have not seen anything materialize. This would be a core holding if you want to be in the uranium space. This will be highly correlated to Uranium prices. Cigar Lake is finally on.

One of the biggest uranium producers. Has this as a “sector outperform”. He is not adding any uranium, but if he was, he would buy Uranium Participation (U-T).

(Market Call Minute.) There has been a lot of consolidation in uranium producers. He thinks utilities are going to be back buying additional uranium going forward. Feels there is significant upside here.

A lot of uranium stocks have had a good run. There are very few of them on his screen. Any sector that is out of favour automatically moves to his screen. Very well run company. Cigar Lake project has now started to move. This was one of the reasons why their debt load increased and it is now pretty big. Doesn’t like the balance sheet all that much. If Cigar Lake starts to provide uranium, that will boost the figure within about 4 years. You also have to look at the nuclear industry. Japan is making noises about getting their nuclear plants up and going again.

Was surprised by the extent of the run. There is a thought that Japan would turn on reactors. Some see Cigar Lake coming on stream. If you are short term, you should take profits. Otherwise stay with it.

Just started production again at Cigar Lake. In the very short term, this company has given us everything we had been looking for. The problem right now is that there are not enough earnings, which is needed to drag the stock further. However, if the Japanese are going to reignite their reactors, then the outlook is interesting, but we do need earnings now. The stock currently is fully valued.

Seasonality for this is very positive from around the 3^rd week in January right through until around the end of April. Chart shows a gorgeous long-term breakout right at the time of seasonal strength. Stock is in an upward trend and outperforming the market and is well above its 20 day moving average. Technicals score of 3 and positive seasonality is a classical opportunity to Buy more.

He is widely bullish for the next decade or 2 on uranium. Simply put, it is the single most efficient source of high-powered global energy and we need it. Reactors are coming on stream. You have Russia decommissioning of the nukes ending, supplies/demand balance is starting to improve. Likes the sector. It is going to be volatile. Japan is starting to turn on their reactors again.

The good news for the uranium sector is that Japan is going back to nuclear. The good news for the people of Japan is that radiation levels in Tokyo right now are less than in Paris. This company requires nuclear reactors to be built sooner or later. Has an existing business of refuelling existing reactors. Decommissioning nuclear plants is hugely problematic, burying spent energy is hugely problematic and mining uranium is hard work. This company has had a lot of problems getting it out of the ground. Feels it is overvalued. Uranium Participation (U-T) might be a smarter play.

There are some great entry points. Some good catalysts. The Japanese will have to launch their nuclear plants again and we are at a good bottom on Uranium. Sector outperform rating.

He goes back and forth. Their resource is incredible. There is nothing like it in the world. He would like to buy it cheaper. Thinks they will continue to do well. At these levels you will do well with it.

Missed on earnings. Costs are higher and they are winding down their production a little more. However, he likes uranium at this time. Thinks it is going to have a decent move. There is a fairly positive result for the nuclear industry from the Tokyo elections. Huge nuclear growth is coming into China in the next couple of years. Thinks uranium goes back over $60 a pound from its current $34. (See Top Picks.)

Has been in the doldrums for a long time. Japan had shut down about 50 nuclear reactors and there is another 14 coming back on stream now. Cigar Lake is now coming on stream. He thinks it is time to Buy this stock.

Important resource stock to our index. Understands the argument that uranium will go up. It is getting so expensive for Japan to import Natural Gas. It looks like CCO is already discounting that ahead of time.

A number of changes have occurred in the last few months. The supply of weapons grade uranium is not coming into the market anymore. Also, there are a lot of problems in getting uranium supplies out of Africa. There is a lot of noise coming out of Japan that they are going to have to start up their nuclear plants again because they are spending way too much on hydrocarbons that are being imported.