Cameco Corporation (CCO.TO)

Awesome breakout. Higher highs and higher lows. In an uptrend. Great stock. He doesn't buy just because the price touches the trendline, but waits for a bounce. As long as pullbacks hold, they're buyable.

CCO is a large-scale uranium producer and part of the nuclear supply chain, which is gaining support under the 'clean baseload power' and infrastructure transition narrative. We think it has some tailwinds from the AI and infrastructure angle, momentum has been great, and forward earnings estimates are trending higher. It trades at a premium valuation of 74X forward earnings, but margins have been reaccelerating and its free cash flow growth has been significant. We think it looks interesting here.
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Uranium pricing is moving higher. Great acquisition on nuclear from Westinghouse. First of the uranium companies to break out to new highs a couple of years ago. Giant structural base. Pricing power and volume growth. Core in his portfolio, not speculative. Will benefit over next few years from the environment we're in. Yield is 0.12%.

Wait for a pullback, as optimism of whole world on uranium is at fever pitch right now (but for very good reason). Need uranium and nuclear to be part of the power solution. Proxy for uranium market (illiquid and opaque), and spot uranium prices are very strong.

For the longest time, no one wanted to talk about this one. All of a sudden people have realized that nuclear is safe, clean, and abundant. Has become in vogue. When uranium is sold to power utilities, those contracts are done for 5-10 years at a time. So he's not sure the earnings power is going to jump up.

If you have a long-term view of 10 years plus, then maybe you want to have a position. If not, be cautious on valuation. Wait for a pullback or for sentiment to become a bit more negative.

Caught up by sellers in the momentum stocks. Long-term picture for nuclear power is really strong. Demand for power will continue to grow, and this is one of the links in that chain. Stock's pulled back a bit, and he'd be a buyer.

CCO is the bellwether, and a big part of URA, a uranium ETF. On the chart for CCO, you can see that it's had a big move but starting to stall out a bit. Starting to consolidate in time. Important support around $85, a 10-15% correction. Likes the chart longer term, but at these high levels it's like flipping a coin. He'd be nervous to put on a big position, especially with his view that a correction is coming in next 1-3 months.

We need this power. Likes it long term, as the entire space of clean energy from nuclear power makes sense. Valuation extended. Pushed up into a different stratosphere technically. He'd look to buy in the $80s and $90s. Likes the chart's technical structure.

How much of their forward PE is already baked into their price vs. the upside. If you hold a large position, take profits. When a commodity price is high, always take some profits. The long-term chart is choppy.

Sometimes a stock just gets ahead of itself, or the market thinks expectations are too high. Pretty mature, and great, business in the space. His team only buys or sells if there's a significant change in the business or valuation.

He focuses on companies earlier in their cycle, such as NXE.

Nuclear renaissance, and then Russian invasion of Ukraine really tightened up supply and turbo-charged the idea. Cigar Lake producing steadily. Mothballed mine reopened. Low-cost, long-life reserves. Joint venture with Kazakhstan facing issues, but that's a small piece of the puzzle.

Deals with data centres continue. Uranium price is firm, but not high enough to stimulate new supply. Westinghouse JV has signed numerous deals, moving CCO price higher recently. Finding its way into green energy portfolios. Still likes.

On fire. He used to be in and out, but then it broke out and held for more than a few days. Took some profits (50%) recently, as it's a bit parabolic. Still likes it, wouldn't bail out. Bit overbought, could retrace a bit. 

(Note the short timeframe.)  Alternative energy play. Westinghouse acquisition sets them up really well for the future. One of his largest positions; hasn't trimmed yet because it hasn't become too big a percentage. Everyone should have 2-3% as a long-term investment.

Uranium and nuclear companies have a long way they can go. Very early stages of big growth cycle for modular nuclear reactors and large-scale reactors. Nuclear infrastructure purchase gives lots of opportunity for growth. Leader in the group, first to break out to new highs. Big move recently, suspects it'll be a multi-bagger over next 5 years.

Nuclear sentiment really starting to accelerate. Mini reactors are the trend, hyperscalers are jumping on board, and that will feed the trend. Cigar Lake struggles have gone away, now world leader. Earnings and technicals moving up. Tends to be volatile, so move in by tranches.