Cameco Corporation (CCO-T)

Uranium stocks had a fantastic run. Not at a 12-month low but, fundamentally speaking, you have utilities that aren't properly covered in terms of their needs. Supply issues. Not many are starting new mines, as they wait for prices to get back to $100/pound. It takes time to start new mines. Buy it now, knowing of the fundamental global energy trend in place. Modular reactors will become reality over the next 10 years.

Spot market is what people look at every single day, and that's where you see the gyrations in uranium prices. Right now, ~$65/pound. Term market is where most of the long-term contracting gets done, such as by utilities; and that one's been fairly steady.

Super bullish on AI, it's just getting started. We're going to run out of power before we run out of demand for AI. Need energy, cooling, construction, labour, chips, racks. Hard to tell what future's going to bring. Demand for data centres will be a bumpy story as the economy ebbs and flows.

Nuclear is exciting, but unsure how quickly you're going to make money. CCO is a great business with great operations. Good for those who bought the dip in April. He'd prefer nat gas via TOU.

Think of it as a core position in a Canadian context. Uranium has really come into its own. Outside of speculative companies, is the best low-cost producer. Nuclear servicing via Westinghouse purchase. Not something you need to jump into with both feet today.

He and his team are secular bulls on the nuclear renaissance. Cheap and clean. Has second-largest stock of uranium in the world. Utilities that buy uranium are like deer in the headlights right now on uncertainty of whether Washington will broker a truce with Russia on Ukraine, bringing Russian uranium back online.

Uranium stocks have been pulling back since November, before the market started to correct. Technically in the near term, they're all broken. Long-term picture is excellent. Don't add here, until you see something change for the better.

CCO has had three broker target price downgrades in April. In addition, the uranium sector has been weak as investors consider whether Russian exports will be allowed to resume if there is some resolution to the Ukraine War.
Unlock Premium - Try 5i Free

Came off quite significantly between December and March. Previous high was ~$85; the 50% retracement takes us to $72.50. This is where we saw some resistance in early February. Hard to say if it would get to $80. Usually, if there's a move in a stock, the countermove can often be about half of that.

Nuclear power is a way forward and there is a case for smaller nuclear power plants. He doesn't like cyclical stocks but Cameco is in a bit of a sweet spot. Lots of power will be needed for AI data centres.

On her watchlist. Have to have a very long-term view on uranium to buy this name. Long-term contracts, which don't reflect uranium spot price. Nuclear resurgence, positive on the sector. Price still ahead of itself. She has indirect exposure through BIP.UN, which co-owns Westinghouse with CCO.

Looking at it closely. Long-term future of nuclear looks very positive. Electrification of the economy increasing power demand. Many governments more willing to build facilities. Well managed. Good buy on a pullback like today.

Best way to participate in Uranium them. Believes Uranium prices will continue to rise. Recent weakness in Uranium prices has created buying opportunity. Owns large portion of Westinghouse - manufacture of nuclear related assets. Excellent growth prospects. Dividend continues to rise with earnings. Capital discipline with strong balance sheet. 

Technical structure has been very strong. 200-day MA trending higher. Stock's trading right at that 200-day, which could provide support. Fell off on the DeepSeek buzz (if not as much energy is needed, maybe not as much uranium is needed either) -- quite a stretch. Long term, makes a lot of sense. Expensive valuation.