Cameco Corporation (CCO.TO)

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.

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.