Cameco Corporation (CCO.TO)

Does not own uranium right now. Japanese restarts are taking longer than anticipated. CCO is not capturing all of the upside when uranium price move up. There is no urgency to move into uranium at this time.

If you think uranium is going to go up, he would play it through Uranium Participation (U-T). This company has had some operational issues going back 5 years or so. Also, wound down the decommissioning of the Russian nukes.

He would be reticent on this. There has been more positive news over the last few months, but a negative report yesterday sent the whole group into another dip. They are looking for supply/demand balances to still be in favour of more supply and weaker prices through until 2021. That’s a long time to wait for a cyclical commodity type play.

There is no bottom in sight for the stock because of the continuing weakness in both spot and contract prices for uranium. There is some question as to how quickly Japan is going to restart some of the nuclear power plants. They also may have put new plans on hold. That’s not the case for China and India. Europe has gone out of the nuclear power business.

If we have an inflationary economy, then you want to own all the resources, because the economy will do well relative to rising inflation. The difficulty is that the uranium price is doing the “dead cat” bounce right now. Demand for this has slowed ever since the Fukushima disaster. Dividend has stayed the same, around $0.40, so it is not like getting a big upside in the growth in income and therefore you need share price performance and the stock has not done a whole lot in a long time.

He is not in any of these. Uranium prices have been quite soft for the last few months. He is following it.

Has always had trouble with uranium, because it is not just a supply/demand metal, it is also a political metal. Has never been that successful in guessing where the uranium cycle is going to go. Even at today’s price, he would be wary of this. Lately spot prices have been weighing on the stock and the sector in general.

He was bullish on uranium last year and was on the verge of going short. Uranium headed back down on the weekend. People got too optimistic on the restart of the Japanese reactors. 2017/18 is when supply will be short. He would not own uranium stocks now.

A great one, but he prefers U-T.

It is a typical long term hold story. Uranium story was damaged by reactor in Japan, but now things are moving on.

Thinks this is a good place to enter. You have a couple of places to put a Stop in such as around $25 as well as $23. Risk/reward is really good.

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.