Cameco Corporation (CCO.TO)

Came out with fantastic numbers today. Took a lot of people by surprise. It is still all about Japan when it comes to uranium. Japan really doesn’t have any choice but to start using uranium for power. If big institutions start to move into uranium they are only going to look at this one, not anything else. Cigar Lake will be coming on stream in Q1 of 2014. Suggests you take a half position at this time. Be cautious.

We keep hearing that nuclear is going to expand going forward but, in the developed world, that is at least a 10 year time horizon.

(Market Call Minute) It will be a while before uranium regains its popularity.

(Market call Minute) More likely to short than buy. Does not like Uranium at this time.

Looked at this over the last 3 years and looked at it again today. The underlying issue with uranium is that the supply should start to decline by around 2020, which is when a lot of the Russian uranium supply will be finished (from the nuclear arms). All the big uranium companies have aggressively been looking for uranium and spending a lot of money on it. On a valuation basis, it is still trading at about 15-16 times earnings so it doesn’t sound extremely cheap. Japanese nuclear reactors have come off stream for the most part. In the short term, he doesn’t see any reason to own this, but if the stock fell because of weakening earnings, you would get an entry point. For a long-term investor, there could be a lot of upside in the next decade or so. He would like to see it at around $15.

Uranium sector. He prefers U-T because it is a pure commodity. There are some problems with the reactor in Japan. German is getting out of nuclear power. There are some problems for uranium generally.

(Market Call Minute) Doesn’t like uranium because of Japan but if you owned one Uranium stock this would be it.

Blue sky in their future. Fundamentals are probably going to improve. Demand will pick up as nuclear reactors are restarted over the next few years in Europe. Issues with starting up Cigar lake will push things out, but this is normal with Uranium mines.

If you have a long-term view of 7 to 10 years, this should do great. Spot price of uranium is down to $34, which is crazily low, but this is a glacial market. You could almost wait to see the spot price moving to $40, which would confirm the trend.

(Market Call Minute.) Uranium business is going to continue to be a struggle.

As good of a name as any to participate in nuclear energy. Junior companies would have more challenges. He is not particularly bullish on Uranium prices and there is still some uncertainty after the accident in Japan.

The uranium story is a core part of what the world needs. You want to be cautious in light of the disaster in Japan. It is at attractive levels for trading.

Within the energy complex, he is adding natural gas, which has a much better catalyst. This is definitely one to have on your Watch List. It also depends on how much money you have. If you can put some away, it is not a bad time. At some point uranium prices will deftly start to move.

This is not where he would make a bet right now. Uranium still has some work to do.

This is one you probably should wait on. The long-term fundamentals all make sense. There is a big reduction in supply coming with weapons grade uranium from Russia stopping. It should all create a stronger price but it hasn’t. You need to see more demand on the demand side.